Question: I have this same problem INCOME STATEMENT(Figures in $ millions)Net sales$891.00 Cost of goods sold751.00 Depreciation41.00 Earnings before interest and taxes (EBIT)$99.00 Interest expense22.00 Income
I have this same problem
INCOME STATEMENT(Figures in $ millions)Net sales$891.00
Cost of goods sold751.00
Depreciation41.00
Earnings before interest and taxes (EBIT)$99.00
Interest expense22.00
Income before tax$77.00
Taxes26.95
Net income$50.05
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $379 $332
Long-term assets $278 $232
Total assets $657 $564
Liabilities and shareholders' equity
Current liabilities $204 $167
Long-term debt $118 $131
Shareholders' equity $335 $266
Total liabilities and shareholders' equity $657 $564
The company's cost of capital is 8%.
a. Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
In my assignment there are some different numbers
Interest expense is $18
Net Income $67.15
Shareholders Equity is $262
Current Liabilities is $163
From my assignment
Here are simplified financial statements for Watervan Corporation:
INCOME STATEMENT(Figures in $ millions)Net sales$887.00
Cost of goods sold747.00
Depreciation37.00
Earnings before interest and taxes (EBIT)$103.00
Interest expense18.00
Income before tax$85.00
Taxes17.85
Net income$67.15
BALANCE SHEET(Figures in $ millions)End of YearStart of YearAssetsCurrent assets$375
$324
Long-term assets270
228
Total assets$645
$552
Liabilities and shareholders' equityCurrent liabilities$200
$163
Long-term debt114
127
Shareholders' equity331
262
Total liabilities and shareholders' equity$645
$552
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.)
I keep getting 42.725 and putting in 42.73 I keep getting it's not correct. I don't get what I am doing wrong
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