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Thank you INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) Interest expense Income before
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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 BALANCE SHEET (Figures in $ millions) Assets $901.00 761.00 51.00 $89.00 32.00 $57.00 11.97 $ 45.03 Check my wo End of Year Start of Year Current assets $ 389 Long-term assets. 298 $ 352 242 $594 Total assets $ 687 Liabilities and shareholders' equity Current liabilities. $ 177 Long-term debt $214 128 345 141 240 Shareholders' equity Total liabilities and shareholders' equity $687 $ 558 The company's cost of capital is 8.5%. a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the company's 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? a. Economic value added million b. Return on capital % C. Return on equity % d. Is the company creating value for its shareholdersStep by Step Solution
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