Chapter 4 Measuring Corporate Performance ormane Here are simpied financial sateaments for Wateran Corporation: 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 Assets $369 $312 Current assets Long-term assets 258 $627 $534 Total assets Liabilities and shareholders' equity Current liabilities Long-term debt Shareholders' equity $194 108 325 $627 $157 121 256 $534 Total liabilities and shareholders' equity The company's cost of capital is 85%.(L04.2) a. Calculate Watervan's economic value added (EVA). b. What is the company's return on capital? (Use start-of-year rather than average capital.) c. What is its return on equity? (Use start-of-year rather than average equity.) d. Is the company creating value for its shareholders