QUESTIONS:

a. Calculate Quick Burgers free cash flow in 2019. (Enter your answer in millions.)

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.)

c. What would the companys free cash flow have been if it was all-equity financed? (Enter your answer in millions.)

Please show how you came up with your answer so I can learn this! Thanks so much.

INCOME STATEMENT OF QUICK BURGER CORP., 2019 (Figures in $ millions) Net sales $ 27,577 Costs 17,579 Depreciation 1,412 Earnings before interest and taxes (EBIT) $ 8,586 Interest expense 527 Pretax income 8,059 Federal taxes (21%) 1,692 Net income $ 6,367 2019 2018 $ 3,413 $ 3,413 397 3,153 $ 3,550 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 Current liabilities $ 2,346 $ 2,346 Debt due for repayment 1,385 1,345 Accounts payable 132 127 Total current liabilities 1,099 626 $ 4,962 $ 4,444 Long-term debt $ 24,687 $22,845 Other long-term liabilities 2,814 2,663 Total liabilities 2,993 3,109 Total shareholders' equity $35,456 $33,061 Total liabilities and shareholders' equity $ 13,643 3,067 $ 20,123 15,333 $ 35,456 $12,144 2,967 $18,661 14,400 $33,061 In 2019 Quick Burger had capital expenditures of $3,059