INCOME STATEMENT (Figures in $ millions) Net saleg $888.00 Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) 748.00 38.00 $102.00 Interest expense 19.00 Income before tax $83.00 Taxes 17.43 Net income $ 65.57 BALANCE SHEET (Figures in $ millions) Start End of of Year Year Assets Current assets S 376 $ 326 Long-tern assets 272 229 Total a3sets $ 648 $ 555 Liabilities and shareholders' equity Current liabilities Long-terr debt Shareholders' equity $ 201 $ 164 115 128 332 263 Total liabilities and shareholders' equity $ 648 $ 555 The company's cost of capital is 8.5%.

INCOME STATEMENT (Figures in $ millions) Net saleg $888.00 Cost of goods sold Depreciation Earnings before interest and taxes (EBIT) 748.00 38.00 $102.00 Interest expense 19.00 Income before tax $83.00 Taxes 17.43 Net income $ 65.57 BALANCE SHEET (Figures in $ millions) Start End of of Year Year Assets Current assets S 376 $ 326 Long-tern assets 272 229 Total a3sets $ 648 $ 555 Liabilities and shareholders' equity Current liabilities Long-terr debt Shareholders' equity $ 201 $ 164 115 128 332 263 Total liabilities and shareholders' equity $ 648 $ 555 The company's cost of capital is 8.5%.

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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Question

100%

Need help calculating: A. Economic value added and B. Return on Capital

oblems
Saved
INCOME STATEMENT
(Figures in $ millions)
Net saleg
$888.00
Cost of goods gold
Depreciation
748.00
38.00
(EBIT) $102.00
19.00
Earnings before interest and taxes
Interest expense
Income before tax
$ 83.00
Taxes
17.43
Net income
$ 65.57
BALANCE SHEET
(Figures in $ millions)
Start
End of
of
Year
Year
Assets
Current assets
$ 376
$ 326
Long-term assets
272
229
Total a3sets
$ 648
$ 555
Liabilities and shareholders' equity
Current liabilities
Long-term. debt
Shareholders' equity
$ 201
$ 164
115
128
332
263
Total liabilities and shareholders' equity
$ 648
$ 555
The company's cost of capital is 8.5%.
6 of 8
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