Question

 INCOME STATEMENT(Figures in $ millions)  Net sales$ 891     Cost of goods sold751     Depreciation41      Earnings before interest and taxes (EBIT)$ 99     Interest expense22      Income before tax$ 77     Taxes24      Net income$ 53     BALANCE SHEET(Figures in $ millions) End of Year Start of Year  Assets           Current assets$379  $332     Long-term assets 278   232         Total assets$657  $564     Liabilities and shareholders’ equity           Current liabilities$204  $167     Long-term debt 118   131     Shareholders’ equity 335   266         Total liabilities and shareholders’ equity$657  $564    The company’s cost of capital is 8.00%. a.Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)   Economic value added$  million  b.What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)   Return on capital %   c.What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)   Return on equity % 

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