RETURN ON EQUITY AND QUICK RATIO Lloyd Inc. has sales of $150,000, a net income of $18,000, and the following balance sheet: Cash Receivables Inventories Total current assets Net fixed assets Total assets 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 $32,805 27,540 $60,345 58,320 286,335 $405,000 $35,235 Accounts payable 68,445 Notes payable to bank 182,250 Total current liabilities $285,930 Long-term debt 119,070 Common equity $405,000 Total liabilities and equity 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