RETURN ON EQUITY AND QUICK RATIO Lloyd Inc, has sales of $450,000, a net income of $54,000, and the following balance sheet: Cash $100,800 Accounts payable $79,200 Receivables 174,600 Notes payable to bank 67,500 Inventories 450,000 Total current liabilities $146,700 Total current assets $725,400 Long-term debt 155,700 Net fixed assets 174,600 Common equity 597,600 Total assets $900,000 Total liabilities and equity $900,000 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. a. 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. % b. What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places