Business, 12.10.2021 01:20, wgdelgado

Measuring Performance. Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in S millions)
Net sales 881
Cost of goods sold 741
Depreciation 31
Earnings before interest and taxes (EBIT) 109
Interest expense 12
Income before tax 97
Taxes 34
Net income 63
BALANCE SHEET (Figures in $ millions)
End of Year Start of Year
Assets
Current assets 369 312
Long-term assets 258 222
Total assets 627 534
Liabilities and shareholders' equity
Current liabilities 194 157
Long-term debt 108 121
Shareholders' equity325 256
Total liabilities and shareholders' equity 627 534
The companyâ€™s cost of capital is 8.5%.
a. Calculate Watervanâ€™s economic value added (EVA).
b. What is the companyâ€™s return on capital? (Use start-of-year rather than average capital.)
c. What is its return on equity? (Use start-of-year rather than average equity.)
d. Is the company creating value for its shareholders?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:50, BARRION1981

Hanna intends to give her granddaughter, melodee, her antique hat pin. this heirloom has been kept under lock and key in the wall vault in the library of hanna's house in virginia. the hat pin is currently the only item in the vault. when hanna is visiting melodee in connecticut, hanna gives melodee the only key to the vault. melodee is grateful for the present and excitedly accepts. in this situation has there been a completed gift?

Answers: 3

continue

Business, 22.06.2019 01:30, gavinarcheroz2jxq

Consider the following limit order book for a share of stock. the last trade in the stock occurred at a price of $50. limit buy orders limit sell orders price shares price shares $49.75 500 $49.80 100 49.70 900 49.85 100 49.65 700 49.90 300 49.60 400 49.95 100 48.65 600 a. if a market buy order for 100 shares comes in, at what price will it be filled? (round your answer to 2 decimal places.) b. at what price would the next market buy order be filled? (round your answer to 2 decimal places.) c. if you were a security dealer, would you want to increase or decrease your inventory of this stock? increase decrease

Answers: 2

continue

Business, 22.06.2019 12:10, latdoz0952

Which of the following is not part of the mission statement of the department of homeland security? lead the unified national effort to secure america protect against and respond to threats and hazards to the nation ensure safe and secure borders coordinate intelligence operations against terrorists in other countries

Answers: 1

continue

Business, 23.06.2019 03:20, briyuna15

Suppose the following items were taken from the 2017 financial statements of whispering winds corp.. (all dollars are in millions.) common stock $3,230 accumulated depreciation—equipment $3,940 prepaid rent 175 accounts payable 1,560 equipment 6,940 patents 2,270 stock investments (long-term) 670 notes payable (long-term) 780 debt investments (short-term) 1,740 retained earnings 6,175 income taxes payable 150 accounts receivable 1,740 cash 1,290 inventory 1,010 prepare a classified balance sheet in good form as of december 31, 2017. (list current assets in order of liquidity.)

Answers: 3

continue

Do you know the correct answer?

Measuring Performance. Here are simplified financial statements for Watervan Corporation: INCOME S...