c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Free cash flow The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,567 Costs 17,569 Depreciation 1,402 Earnings before interest and taxes (EBIT) $ 8,596 Interest expense 517 Pretax income 8,079 Federal taxes (21%) 1,697 Net income $ 6,382 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) 2019 2018 Liabilities and Shareholders' Equity 26 Current liabilities $ 2,336 $ 2,336 Debt due for repayment 1,375 1,335 Accounts payable $ 3, 122 117 Total current liabilities $ 3, 1,089 616 $ 4,922 $ 4,404 Long-term debt $ 13 $24,677 $22,835 Other long-term liabilities 3 2,804 2,653 Total liabilities $20 2,983 3,099 Total shareholders' equity 15, $35,386 $32,991 Total liabilities and shareholders' equity $35, In 2019 Quick Burger had capital expenditures of $3,049. Saved Help Save & Exit Submit Intangible assets (goodwilt) Other long-term assets Total assets 2,804 2,983 $35,386 2,653 3,099 $32,991 Check my work Total liabilities $20,093 518,601 Total shareholders' equity 15, 293 14,390 Total liabilities and shareholders' equity 535,386 $32,991 In 2019 Quick Burger had capital expenditures of $3,049. a. Calculate Quick Burger's free cash flow in 2019. (Enter your answer in millions.) Free cash flow $ 4,077 million incos b. If Quick Burger was financed entirely by equity, how much more tax would the company have pald? (Assume a tax rate of 21%.) (DO not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places) Additional tax $ 108.57 milion c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Free cash flow Check my work Depreciation Earnings before interest and taxes (EBIT) Interest expense Pretax income Federal taxes (214) Net income 1,402 $ 8,596 517 8,879 1,697 $ 6,382 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets BALANCE SHEET OF QUICK BURGER CORP., 2019 Figures in 5 millions) 2019 2018 Liabilities and Shareholders' Equity 2019 2018 Current liabilities $ 2,336 $ 2,336 Debt due for repayment $ 367 1,375 1,335 Accounts payable $ 3,403 3, 143 122 117 Total current liabilities 1,089 616 5 3,483 $ 3,510 $ 4,922 $ 4,404 Long-term debt $13,633 $12, 134 $24,677 $22,835 Other long-term liabilities 3,857 2,957 2,804 2,653 Total liabilities $20,093 $18,681 2,983 3,099 Total shareholders' equity 15, 293 14,390 $35, 386 $32,991 Total liabilities and shareholders' equity 535,386 $32,991
