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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 27,568
Costs 17,570
Depreciation 1,403
Earnings before interest and taxes (EBIT)8,595
Interest expense 518
Pretax income 8,077
Taxes 2,616
Net income 5,461
BALANCE SHEET OF MCDONALDS CORP., 2012
(Figures in $ millions)
Assets 20122011 Liabilities and Shareholders' equity 20122011
Current assets Current liabilities
Cash and marketable securities 2,3372,337 Debt due for repayment 370
Receivables 1,3761,336 Accounts payable 3,4043,144
Inventories 123118 Total current liabilities 3,4043,514
Other current assets 1,090617
Total current assets 4,9264,408
Fixed assets Long-term debt 13,63412,135
Property, plant, and equipment 24,67822,836 Other long-term liabilities 3,0582,958
Intangible assets (goodwill)2,8052,654 Total liabilities 20,09618,607
Other long-term assets 2,9843,100 Total shareholders equity 15,29714,391
Total assets 35,39332,998 Total liabilities and shareholders equity 35,39332,998
In 2012 McDonalds had capital expenditures of $3,050.
a. Calculate McDonalds free cash flow in 2012.(Enter your answer in millions.)
Free cash flow $
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 $
million

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