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Need some clarification. I think I'm doing this correct but i keep getting errors. The following table shows an abbreviated income statement and balance sheet
Need some clarification. I think I'm doing this correct but i keep getting errors.
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 2018 $ 367 3,143 $ 3,510 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 BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) 2019 2018 Liabilities and Shareholders' Equity 2019 Current liabilities $ 2,336 $ 2,336 Debt due for repayment 1,375 1,335 Accounts payable $ 3, 403 122 117 Total current liabilities $ 3,403 1,089 616 $ 4,922 $ 4,404 Long-term debt $ 13,633 $24,677 $22,835 Other long-term liabilities 3,057 2,804 2,653 Total liabilities $20,093 2,983 Total shareholders' equity 15, 293 $35, 386 $32,991 Total liabilities and shareholders' equity $35,386 $12,134 2,957 $18,601 14,390 $32,991 Total assets 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 $ 4,627 million This is a numeric cell, so please enter numbers only. b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places) Additional tax million c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Free cash flowStep by Step Solution
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