31 Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 881 Cost of goods sold 741 Depreciation Earnings before interest and taxes (EBIT) $ 109 Interest expense 12 Income before tax $ 97 Taxes 34 Net income $ 63 Start of Year $ 312 222 BALANCE SHEET (Figures in $ millions) End of Year Assets Current assets 369 Long-term assets 258 Total assets $ 627 Liabilities and shareholders' equity Current liabilities 194 Long-term debt 108 Shareholders' equity 325 Total liabilities and shareholders' equity $ 627 $ 534 $ 157 121 256 $ 534 The company's cost of capital is 8.5%. 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 % d. Is the company creating value for its shareholders? 00 Yes O No