Check My Work B Total current assets eBook Problem Walk-Through Lloyd Inc. has sales of $100,000, a net income of $6,000, and the following balance sheet: Cash $ 15,120 Accounts payable $ 29,430 Receivables 33,480 Notes payable to bank 11,070 Inventories 137,700 Total current liabilities $ 40,500 $186,300 Long-term debt 41,580 Net fixed assets 83,700 Common equity 187,920 Total assets $ 270,000 Total liabilities and equity $ 270,000 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, 2x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2x), 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 increase : by percentage points. What will be the firm's new quick ratio? Do not round Intermediate calculations. Round your answer to two decimal places