Problem 3-24 Free Cash Flow (LO3) The following table shows an abbrevisted income statement and balance sheet for McDonald's Corporation for 2012. INCOME STATEMENT OF MCDONALD'S CORP. 2012 (Figures in 5 millions) Net sales 27,575 Costs 17.577 Depreciation 1.410 Earnings before interest and taxes (EBIT) Interest expense 8,588 525 Pretax income Taxes 8,063 2.630 Net income 5,433 2012 2011 Assets Current assets Cash and marketable securities Receivables BALANCE SHEET OF MCDONALD'S CORP. 2012 (Figures in $ millions) Liabilities and Shareholders' 2012 2011 equity Current liabilities 2.344 2,344 Debt due for repayment 1.383 1,343 Accounts payable 130 125 Total current liabilities 1,097 624 391 3,411 3.151 Inventories Other current assets 3,411 3.542 4,954 Total current assets Fixed assets Property, plant, and equipment 4.436 Long-term debt 22.843 Other long-term liabilities 13.641 3,065 12,142 2.965 24,685 2.812 Intangible assets (goodwill) Other long-term assets 2.661 3.107 20,117 15.325 18,649 14,398 2,991 Total liabilities Total shareholders' equity Total liabilities and shareholders equity Total assets 35,442 33.047 35,442 33,047 In 2012 McDonald's had capital expenditures of $3,057. a. Calculete McDonald's free cash flow in 2012. (Enter your answer in millions.) Free cash flow million If McDonald's was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35% on the revised pretex income.) (Do not round b. Intermediate calculations. Enter your answer in millions rounded to the nearest whole number.) Additional tax million