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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) $ 27,567 Net sales 17,569 Costs 1,402 $ 8,596 Depreciation Earnings before interest and taxes (EBIT) Interest expense 517 Pretax income 8,079 2,614 Federal plus other taxes $5,465 Net income BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) 2018 Liabilities and Shareholders ' Equity 2019 2019 2018 Assets Current 1iabilities Current assets Debt due for repayment 2,336 1,335 Cash and marketable securities $2,336 367 Accounts payable Receivables 1,375 $3,403 $3,403 3,143 $ 3,510 Inventories 122 117 Total current liabilities 1,089 Other current assets 616 $ 4,404 Total current assets $ 4,922 Long-term debt Other long-term liabilities $13,633 3,057 $12,134 2,957 Fixed assets Property, plant, and equipment $24,677 $22,835 Intangible assets (goodwill) Other long-term assets Total liabilities 2,804 2,983 2,653 3,099 $20,093 15,293 $18,601 14,390 Total shareholders' equity Total assets $35,386 $32,991 Total liabilities and shareholders' equity $35,386 $32,991 In 2019 Quick Burger had capital expenditures of $3,049. a. Calculate Quick Burger's free cash flow in 2019. (Enter your answer in millions.) Free cash flow 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) Additional tax million X c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Free cash flow
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