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The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2022. INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022(Figures in
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2022.
INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022(Figures in $ millions)Net sales$ 27,576Costs17,578Depreciation1,411Earnings before interest and taxes (EBIT)$ 8,587Interest expense526Pretax income8,061Federal taxes (@ 21%)1,693Net income$ 6,368BALANCE SHEET OF QUICK BURGER CORPORATION, 2022(Figures in $ millions)Assets20222021Liabilities and Shareholders' Equity20222021Current assetsCurrent liabilitiesCash and marketable securities$ 2,345$ 2,345Debt due for repayment$ 394Receivables1,3841,344Accounts payable$ 3,4123,152Inventories131126Total current liabilities$ 3,412$ 3,546Other current assets1,098625Total current assets$ 4,958$ 4,440Fixed assetsLong-term debt$ 13,642$ 12,143Property, plant, and equipment$ 24,686$ 22,844Other long-term liabilities3,0662,966Intangible assets (goodwill)2,8132,662Total liabilities$ 20,120$ 18,655Other long-term assets2,9923,108Total shareholders equity15,32914,399Total assets$ 35,449$ 33,054Total liabilities and shareholders equity$ 35,449$ 33,054In 2022 Quick Burger had capital expenditures of $3,058.
- Calculate Quick Burgers free cash flow in 2022.
Note: Enter your answer in millions.
- If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.)
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
- What would the companys free cash flow have been if it was all-equity financed?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.
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