Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before tax Taxes Net income $ 897.00 757.00 47.00 $ 93.00 28.00 $ 65.00 13.65 $ 51.35 Assets Current assets Long-term assets Total assets BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 385 290 $ 344 238 $ 675 $ 582 $ 210 $ 173 124 137 341 272 $ 675 $ 582 Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity The company's cost of capital is 8.5%.