Lloyd Inc. has sales of $500,000, a net income of $35,000, and the following balance sheet:

Cash	$73,600		Accounts payable	$81,600
Receivables	124,800		Notes payable to bank	48,800
Inventories	312,000		Total current liabilities	$130,400
Total current assets	$510,400		Long-term debt	154,400
Net fixed assets	289,600		Common equity	515,200
Total assets	$800,000		Total liabilities and equity	$800,000

The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.25x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25x); if the funds generated are used to reduce common equity (stock can be repurchased at book value); and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places.

%

What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.

x