Input variables: ($ in millions) Income Statement Balance Sheet Net Sales $881 Assets End of Year Start of Year Cost of goods sold 741 Current assets $369 $312 Depreciation 31 Long-term assets 258 222 EBIT $109 Total assets $627 $534 Interest expense 12 Income before tax $97 Liabilities Taxes 20 Current liabilities $194 $157 Net income $77 Long-term debt 108 121 Shareholders' equity 325 256 Total Liab & Eq $627 $534 Cost of capital 8.5% Tax rate 21% (do not round) Solution and Explanation: a. Economic value added $54.48 million b. Return on capital 22.95% c. Return on equity 30.08% d. Is the company creating value for shareholders? Yes