The primary difference between the EVA and economic profit measures is the increased focus on cash flow by EVA. For example economic profit generally uses the provision for income taxes from the income statement while EVA uses cash taxes paid. Eva companies typically make several adjustments from 5 to 15 adjustments for the typical EVA company to both operating income from the income statement and invested capital from the balance sheet. Common examples include adjustments for R&D, LIFO, and warranty costs.

The following data is from 20x3 annual report of Burton Company:

Income from operations $267,400

Provision for income taxes 57,455

Net EVA adjustments added to income from operations 5,398

Additional capital employed from EVA adjustments 234.159

Ending total shareholders equity 845,632

Cash taxes 64,800

Ending total current liabilities 340,125

Ending total assets 1,834,456

Beginning total shareholder