Please help me find question C Return On Capital

Several people have gotten it incorrect. I would really like an explanation. My calculation: (1223*2)/(27,714+27,503) = 4.43% (however, this is not the correct answer)

Here are simplified financial statements for Phone Corporation in a recent year:

INCOME STATEMENT (Figures in $ millions) Net sales Cost of goods sold Other expenses Depreciation $13,193 4,060 4,049 2,518 Earnings before interest and taxes (EBIT) 2,566 Interest expense 685 Income before tax Taxes (at 35%) $1,881 658 Net income Dividends $1,223 $ 856 5 BALANCE SHEET (Figures in S millions) 5 End of Year Start of Year Assets Cash and marketable securities Receivables Inventories Other current assets $ 89 158 2,490 238 932 2,382 187 867 Total current assets Net property, plant, and equipment Other long-term as $ 3,525 19,973 4,216 3,818 19,915 3,770 sets $ 27,714 27,503 iabilities and shareholders' equity Payables Short-term debt $ 2,564 1,419 811 3,040 1,573 787 2 1 1 7 Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity $ 4,794 $ 5,400 6,833 6,149 9,121 7,018 6,178 9,724 Total liabilities and shareholders' equity 27,714 27,503