8. Problem 1.15 (Return on Equity and Quick Ratio) LE eBook Problem Walk-Through Lloyd Inc. has sales of $350,000, a net income of $28,000, and the following balance sheet: Cash $52,780 Accounts payable $119,770 Receivables 158,340 Notes payable to bank 76,125 Inventories 375,550 Total current liabilities $195,895 Total current assets $586,670 Long-term debt 175,595 Net fixed assets 428,330 Common equity 643,510 Total assets $1,015,000 Total liabilities and equity $1,015,000 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, 2.25%, without affecting sales or net income. Ir 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