Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

INCOME STATEMENT OF QUICK BURGER CORPORATION, 2 0 2 2 ( Figures in $ millions ) Net sales $ 2 7 , 5 6 8

INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
Net sales $ 27,568
Costs 17,570
Depreciation 1,403
Earnings before interest and taxes (EBIT) $ 8,595
Interest expense 518
Pretax income 8,077
Federal taxes (@ 21%)1,696
Net income $ 6,381
BALANCE SHEET OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
Assets 20222021 Liabilities and Shareholders' Equity 20222021
Current assets Current liabilities
Cash and marketable securities $ 2,337 $ 2,337 Debt due for repayment $ 370
Receivables 1,3761,336 Accounts payable $ 3,4043,144
Inventories 123118 Total current liabilities $ 3,404 $ 3,514
Other current assets 1,090617
Total current assets $ 4,926 $ 4,408
Fixed assets Long-term debt $ 13,634 $ 12,135
Property, plant, and equipment $ 24,678 $ 22,836 Other long-term liabilities 3,0582,958
Intangible assets (goodwill)2,8052,654 Total liabilities $ 20,096 $ 18,607
Other long-term assets 2,9843,100 Total shareholders equity 15,29714,391
Total assets $ 35,393 $ 32,998 Total liabilities and shareholders equity $ 35,393 $ 32,998
In 2022 Quick Burger had capital expenditures of $3,050.
Calculate Quick Burgers free cash flow in 2022.
Note: Enter your answer in millions.
If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.)
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
What would the companys free cash flow have been if it was all-equity financed?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.
a. Free cash flow million
b. Additional tax million
c. Free cash flow million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Real Estate Financial Modelling

Authors: Roger Staiger

2nd Edition

1138046183, 978-1138046184

More Books

Students also viewed these Finance questions

Question

f. What subspecialties and specializations does the person list?

Answered: 1 week ago

Question

Define Management or What is Management?

Answered: 1 week ago

Question

What do you understand by MBO?

Answered: 1 week ago