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Homework answers / question archive / 1) INCOME STATEMENT(Figures in $ millions) Net sales $891

1) INCOME STATEMENT(Figures in $ millions) Net sales $891

Finance

1)

INCOME STATEMENT(Figures in $ millions)

Net sales $891.00

Cost of goods sold 751.00

Depreciation 41.00

Earnings before interest and taxes (EBIT) $99.00

Interest expense 22.00

Income before tax $77.00

Taxes 26.95

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%.

 Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

 

2) From my assignment

Here are simplified financial statements for Watervan Corporation:

 

INCOME STATEMENT(Figures in $ millions)

Net sales $887.00

Cost of goods sold 747.00

Depreciation 37.00

Earnings before interest and taxes (EBIT) $103.00

Interest expense 18.00

Income before tax $85.00

Taxes 17.85

Net income $67.15

BALANCE SHEET(Figures in $ millions) 

                                               End of Year     Start of Year

Assets       

Current assets                                      $375  $324

 Long-term assets                                 270      228

 Total assets                                           $645    $552

 Liabilities and shareholders' equity       

Current liabilities                                      $200   $163

 Long-term debt                                        114      127

 Shareholders' equity                                 331      262

 Total liabilities and shareholders' equity    $645   $552

The company's cost of capital is 8.5%.

 Calculate Watervan's economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

 

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