15. Problem 4.15 (Return on Equity and Quick Ratio) eBook Problem Walk-Through Lloyd Inc. has sales of $500,000, a net income of $35,000, and the following balance sheet: Cash $ 93,600 Accounts payable $ 102,000 Receivables 174,000 Notes payable to bank 66,000 Inventories 552,000 Total current liabilities $ 168,000 Total current assets $ 119,600 Long-term debt 172,800 Net fixed assets 300,400 Common equity 859,200 Total assets $1,200,000 Total liabilities and equity $1,200,000 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, 1.75X, without affecting sales or net income. It inventories are sold and not replaced (thus reducing the current ratio to 1.75), 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