INCOME STATEMENT (Figures in $ millions) Net sales $ 886 Cost of goods sold 746 Depreciation 36 Earnings before interest and taxes (EBIT) $ 104 Interest expense 17 Income before tax Taxes $ 87 29 Net income $ 58 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets Long-term assets $ 374 268 $ 322 227 Total assets $ 642 $ 549 Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity $ 199 113 330 $ 162 126 261 Total liabilities and shareholders' equity $ 642 $ 549 The company's cost of capital is 7.50%. 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 What is the company's return on capital? (Use start-of-year rather than average b. 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? Yes