Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2 0 2 2 . INCOME STATEMENT OF QUICK

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 $ 27,586
Costs 17,588
Depreciation 1,421
Earnings before interest and taxes (EBIT) $ 8,577
Interest expense 536
Pretax income 8,041
Federal taxes (@ 21%)1,689
Net income $ 6,352
BALANCE SHEET OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
Assets 20222021 Liabilities and Shareholders' Equity 20222021
Current assets Current liabilities
Cash and marketable securities $ 2,355 $ 2,355 Debt due for repayment $ 424
Receivables 1,3941,354 Accounts payable $ 3,4223,162
Inventories 141136 Total current liabilities $ 3,422 $ 3,586
Other current assets 1,108635
Total current assets $ 4,998 $ 4,480
Fixed assets Long-term debt $ 13,652 $ 12,153
Property, plant, and equipment $ 24,696 $ 22,854 Other long-term liabilities 3,0762,976
Intangible assets (goodwill)2,8232,672 Total liabilities $ 20,150 $ 18,715
Other long-term assets 3,0023,118 Total shareholders equity 15,36914,409
Total assets $ 35,519 $ 33,124 Total liabilities and shareholders equity $ 35,519 $ 33,124
In 2022 Quick Burger had capital expenditures of $3,068.
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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Financial Management

Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow

9th Edition

032416470X, 9780324164701

More Books

Students also viewed these Finance questions

Question

4. What are the greatest challenges?

Answered: 1 week ago