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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2 0 1 2 . INCOME STATEMENT OF MCDONALD S

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 27,584
Costs 17,586
Depreciation 1,419
Earnings before interest and taxes (EBIT)8,579
Interest expense 534
Pretax income 8,045
Taxes 2,648
Net income 5,397
BALANCE SHEET OF MCDONALDS CORP., 2012
(Figures in $ millions)
Assets 20122011 Liabilities and Shareholders' equity 20122011
Current assets Current liabilities
Cash and marketable securities 2,3532,353 Debt due for repayment 418
Receivables 1,3921,352 Accounts payable 3,4203,160
Inventories 139134 Total current liabilities 3,4203,578
Other current assets 1,106633
Total current assets 4,9904,472
Fixed assets Long-term debt 13,65012,151
Property, plant, and equipment 24,69422,852 Other long-term liabilities 3,0742,974
Intangible assets (goodwill)2,8212,670 Total liabilities 20,14418,703
Other long-term assets 3,0003,116 Total shareholders equity 15,36114,407
Total assets 35,50533,110 Total liabilities and shareholders equity 35,50533,110
In 2012 McDonalds had capital expenditures of $3,066.
a. Calculate McDonalds free cash flow in 2012.(Enter your answer in millions.)
Free cash flow $ 3,608 Numeric Response 1.Edit Unavailable. 3,608 incorrect.million
b.
If McDonalds 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 $ 187 Numeric Response 2.Edit Unavailable. 187 incorrect.million

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