Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ 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’ equity 325 256 Total liabilities and shareholders’ equity $ 627 $ 534 The company’s cost of capital is 8.5%. a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)