Problem Walk-Through oyd Inc. has sales of $550,000, a net income of $33,000, and the following balance sheet: $ 113,520 73,920 $842,160 Long-term debt $ 187,440 238,920 893,640 477,840 Common equity $1,320,000 Total liabilities and equity $1,320,000 he 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, thout 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 L 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 termediate calculations. Round your answer to two decimal places. DE will -Select- by Cash Receivables Inventories Total current assets Net fixed assets Total assets percentage points. $ 73,920 Accounts payable 187,440 Notes payable to bank 580,800 Total current liabilities hat will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places.

byd Inc. has sales of $550,000, a net income of $33,000, and the following balance sheet: Lew 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. thout affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25 ), if the funds generated are i 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 ermediate calculations. Round your answer to two decimal places. Ewill by percentage points. at will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places