eBook Print References Check my work Check My Work button is now enabledItem 12 Item 12 0.5 points Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 888.00 Cost of goods sold 748.00 Depreciation 38.00 Earnings before interest and taxes (EBIT) $ 102.00 Interest expense 19.00 Income before tax $ 83.00 Taxes 17.43 Net income $ 65.57 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 376 $ 326 Long-term assets 272 229 Total assets $ 648 $ 555 Liabilities and shareholders equity Current liabilities $ 201 $ 164 Long-term debt 115 128 Shareholders equity 332 263 Total liabilities and shareholders equity $ 648 $ 555 The companys cost of capital is 8.5%.