Here are simplified financial statements for Watervan Corporation:

INCOME STATEMENT

(Figures in $ millions)

Net sales	$	881
Cost of goods sold		741
Depreciation		31
Earnings before interest and taxes (EBIT)	$	109
Interest expense		12
Income before tax	$	97
Taxes		34
Net income	$	63

BALANCE SHEET

(Figures in $ millions)

End of Year

Start of Year

Assets

Current assets

$

369

$

312

Long-term assets

258

222

Total assets

$

627

$

534

Liabilities and shareholders equity

Current liabilities

$

194

$

157

Long-term debt

108

121

Shareholders equity

325

256

Total liabilities and shareholders equity

$

627

$

534

a.	Calculate Watervans economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

b.	What is the companys 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.)

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.)

d.

Is the company creating value for its shareholders?

	Yes
	No