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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012. INCOME STATEMENT OF MCDONALDS CORP., 2012 (Figures in $
The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012. |
INCOME STATEMENT OF MCDONALDS CORP., 2012 | ||
(Figures in $ millions) | ||
Net sales | 27,572 | |
Costs | 17,574 | |
Depreciation | 1,407 | |
Earnings before interest and taxes (EBIT) | 8,591 | |
Interest expense | 522 | |
Pretax income | 8,069 | |
Taxes | 2,624 | |
Net income | 5,445 | |
BALANCE SHEET OF MCDONALDS CORP., 2012 | |||||||||||||||||
(Figures in $ millions) | |||||||||||||||||
Assets | 2012 | 2011 | Liabilities and Shareholders' equity | 2012 | 2011 | ||||||||||||
Current assets | Current liabilities | ||||||||||||||||
Cash and marketable securities | 2,341 | 2,341 | Debt due for repayment | 382 | |||||||||||||
Receivables | 1,380 | 1,340 | Accounts payable | 3,408 | 3,148 | ||||||||||||
Inventories | 127 | 122 | Total current liabilities | 3,408 | 3,530 | ||||||||||||
Other current assets | 1,094 | 621 | |||||||||||||||
Total current assets | 4,942 | 4,424 | |||||||||||||||
Fixed assets | Long-term debt | 13,638 | 12,139 | ||||||||||||||
Property, plant, and equipment | 24,682 | 22,840 | Other long-term liabilities | 3,062 | 2,962 | ||||||||||||
Intangible assets (goodwill) | 2,809 | 2,658 | Total liabilities | 20,108 | 18,631 | ||||||||||||
Other long-term assets | 2,988 | 3,104 | Total shareholders equity | 15,313 | 14,395 | ||||||||||||
Total assets | 35,421 | 33,026 | Total liabilities and shareholders equity | 35,421 | 33,026 | ||||||||||||
In 2012 McDonalds had capital expenditures of $3,054. |
a. | Calculate McDonalds free cash flow in 2012. (Enter your answer in millions.) |
Free cash flow | $ million |
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