INCUHE STATEMENT [Figures in S millions] Net sales $EEE.DD Cost of goods sold 146. Depreciation 36.03 Earnings before interest and taxes5104 DD

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.)

INCUHE STATEMENT[Figures in S millions] Net sales $EEE.DDCost of goods sold 146.flflDepreciation 36.03Earnings before interest and taxes5104 DD{EEIT} Interest expense 17.03Income before tax 5 BT.UOTaxes 3D.45Net income 5 55_55 I:l BALANCE SHEET[Figures in $ millions] End of Start ofYear YearAssetsCurrent assets 5 3T4 5 322Long—term assets 263 22?Total assets 5 E42 5 549Liabilities and shareholders’equityCurrent liabilities 5 199 5 162Long—term debt 113 126Shareholders‘r equity 330 261Total liabilities and 5 642 5 549 sbareholrziers‘r equity ___________E:::::::::::::::::::::::::::::::::::::::::::::::::::::::: The company's cost of capital is 8%.