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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 $ 27,578 Costs 17,580 Depreciation 1,413 Earnings before interest and taxes (EBIT) $ 8,585 Interest expense 528 Pretax income 8,057 Federal taxes (@218) 1,692 Net income $ 6, 365 2018 S 400 3,154 $ 3,554 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 2019 Current liabilities $ 2,347 $ 2,347 Debt due for repayment 1,386 1,346 Accounts payable $ 3,414 133 128 Total current liabilities $ 3,414 1,100 627 $ 4,966 $ 4,448 Long-term debt $ 13,644 $ 24,688 $22,846 Other long-term liabilities 3,068 2,815 2,664 Total liabilities $ 20,126 2,994 3,110 Total shareholders' equity 15,337 $35, 463 $ $33,068 Total liabilities and shareholders' equity $35,463 $12, 145 2,968 $18,667 14,401 $33,068 In 2019 Quick Burger had capital expenditures of $3,060. a. Calculate Quick Burger's free cash flow in 2019. (Enter your answer in millions.) Answer is complete but not entirely correct. Free cash flow S 3,860 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.) X Answer is complete but not entirely correct. Additional tax $ S 184.80 million c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Answer is complete but not entirely correct. Free cash flow $ 3,675 X
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