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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
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 $ 27,580 Costs 17,582 Depreciation 1,415 Earnings before interest and taxes (EBIT) $ 8,583 Interest expense 530 Pretax income 8,053 Federal taxes (@21%) 1,691 Net income $ 6,362 2019 2018 $ 3,416 $ 3,416 $ 406 3,156 $ 3,562 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 $ 2,349 $ 2,349 Debt due for repayment 1,388 1,348 Accounts payable 135 130 Total current liabilities 1,102 629 $ 4,974 $ 4,456 Long-term debt $ 24,690 $ 22,848 Other long-term liabilities 2,817 2,666 Total liabilities 2,996 3,112 Total shareholders' equity $ 35,477 $ 33,082 Total liabilities and shareholders' equity $ 13,646 3,070 $ 20,132 15, 345 $ 35,477 $12, 147 2,970 $18, 679 14,403 $33,082 In 2019 Quick Burger had capital expenditures of $3,062. a. Calculate Quick Burger's free cash flow In 2019. (Enter your answer in millions.) Free cash flow million 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 flow
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