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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 $ 27,586 Costs 17,588 Depreciation 1,421 Earnings before interest and taxes (EBIT) $ 8,577 Interest expense 536 Pretax income 8,041 Federal taxes (@ 21%) 1,689 Net income $ 6,352 2019 2018 $ 3,422 $ 3,422 $ 424 3,162 $ 3,586 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 $ 2,355 $ 2,355 Debt due for repayment 1,394 1,354 Accounts payable 141 136 Total current liabilities 1,108 635 $ 4,998 $ 4,480 Long-term debt $ 24,696 $22,854 Other long-term liabilities 2,823 2,672 Total liabilities 3,002 3,118 Total shareholders' equity $35,519 $33,124 Total liabilities and shareholders' equity $ 13,652 3,076 $ 20,150 15,369 $ 35,519 $12,153 2,976 $18,715 14,409 $33,124 In 2019 Quick Burger had capital expenditures of $3,068. 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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