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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012 INCOME STATEMENT OF MCDONALD'S CORP., 2012 (Figures in $

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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012 INCOME STATEMENT OF MCDONALD'S CORP., 2012 (Figures in $ millions) Net sales 27,587 Costs 17,589 Depreciation 1,422 Earnings before interest and taxes (EBIT) Interest expense 8,576 537 Pretax income Taxes 8,039 2,654 Net income 5,385 BALANCE SHEET OF MCDONALD'S CORP., 2012 (Figures in S millions) 2012 2011 Liabilities and Shareholders' equity Current liabilities 2.356 2.356 Debt due for repayment 1,395 1,355 Accounts payable 2012 Assets Current assets Cash and marketable securities Receivables 2011 3,423 427 3,163 Total current liabilities 3,423 Inventories Other current assets 137 636 3,590 142 1,109 5,002 4.484 Total current assets Fixed assets Property, plant, and equipment 24,697 22,855 Long-term debt Other long-term liabilities 13,653 3,077 12.154 2.977 Intangible assets (goodwill) Other long-term assets 2,824 3,003 2,673 3,119 Total liabilities Total shareholders' equity 20,153 15,373 18,721 14,410 Total assets 35,526 33,131 Total liabilities and shareholders' equity 35,526 33,131 In 2012 McDonald's had capital expenditures of $3,069. a. Calculate McDonald's free cash flow in 2012. (Enter your answer in millions.) Free cash flow million b. 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 pretax income.) (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.) Additional tax million

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