Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) $901.00 761.00 51.00 Net sales Cost of goods sold Depreciation Barnings before interest and taxes5 R 00 (EBIT) Interest expense Income before tax Taxes Net income 32.00 57.00 19.95 $ 37.05 BALANCE SHEET Figures in $ millions) End of Year Start of Year Assets Current assets Long-term assets $389s352 242 $ 594 298 $ 687 Total assets Liabilities and shareholders equity current liabilities Long-term debt Shareholders' equity $ 214 177 141 240 $ 687s558 $ 214 128 345 Total liabilities and shareholders' equity The company's cost of capital is 8%