15. Problem 4.15 (Return on Equity and Quick Ratio) eBook Problem Walk-Through Lloyd Inc. has sales of $750,000, a net income of $60,000, and the following balance sheet: Cash $ 195,750 Accounts payable $ 247,500 Receivables 371,250 Notes payable to bank 81,000 Inventories 1,035,000 Total current liabilities $ 328,500 Total current assets $1,602,000 Long-term debt 319,500 Net fixed assets 648,000 Common equity 1,602,000 Total assets $2,250,000 Total liabilities and equity $2,250,000 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, 1.75%, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 1.75x), 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 ROE will -Select @ by percentage points What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places