II 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 $ 881 741 31 $ 109 12 $ 97 - 34 $ 63 BALANCE SHEET (Figures in $ millions) End of Year Start of Year $ 369 258 $ 627 $ 312 222 $ 534 Assets Current assets Long-term assets Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity Total liabilities and shareholders' equity $ 194 108 325 $ 627 $ 157 121 256 $ 534 The company's cost of capital is 8.5%