COC Questions (CNOW) X Check My Work (2 remaining) E eBook Problem Walk Through Lloyd Inc. has sales of $600,000, a net income of $72,000, and the following balance sheet: Cash $ 121,440 Accounts payable $ 112,200 Receivables 171,600 Notes payable to bank 100,320 Inventories 475,200 Total current liabilities $ 212,520 Total current assets $ 768,240 Long-term debt 200,640 Net fixed assets 551,760 Common equity 906,840 Total assets $1,320,000 Total liabilities and equity $1,320,000 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, 2.25x, without 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 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 Check My Work (a remaining) 0 Icon Key Question 2 of 11 Problem 4.15 (Return on Equity and Quick Ratio) RI