Lloyds inc has sales of 200000, a net income of 15000, and the following balance sheet: 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, 2.5x, without affecting sales or net income. if inventories are sold and not replaced ( thus reducing the current ratio to 2.5x); 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? What will be the firms' new quick ratio? Cash 10000, receivables 50000, Inventories 150000 total current assets 210000. Net fixed assets 90000 total assets 300000, Acct. pay 30000, notes pay to bank 20000, total current liab 50000, long term debt 50000, common equity 200000 total liab and equity 300000