Return on Equity and Quick Ratio Lloyd Inc. has sales of $100,000, a net income of $5,000, and the following balance sheet: Cash $21,420 Accounts payable $22,680 Receivables 27,300 Notes payable to bank 10,710 Inventories 119,700 Total current liabilities $33,390 Total current assets $168,420 Long-term debt 36,750 Net fixed assets 41,580 Common equity 139,860 Total assets $210,000 Total liabilities and equity $210,000 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. % What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places. x