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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$ 27,569Costs17,571Depreciation1,404Earnings before interest and taxes (EBIT)$ 8,594Interest expense519Pretax income8,075Federal taxes (@ 21%)1,696Net income$ 6,379BALANCE SHEET OF QUICK BURGER CORPORATION, 2022(Figures in $ millions)Assets20222021Liabilities and Shareholders' Equity20222021Current assetsCurrent liabilitiesCash and marketable securities$ 2,338$ 2,338Debt due for repayment$ 373Receivables1,3771,337Accounts payable$ 3,4053,145Inventories124119Total current liabilities$ 3,405$ 3,518Other current assets1,091618Total current assets$ 4,930$ 4,412Fixed assetsLong-term debt$ 13,635$ 12,136Property, plant, and equipment$ 24,679$ 22,837Other long-term liabilities3,0592,959Intangible assets (goodwill)2,8062,655Total liabilities$ 20,099$ 18,613Other long-term assets2,9853,101Total shareholders equity15,30114,392Total assets$ 35,400$ 33,005Total liabilities and shareholders equity$ 35,400$ 33,005In 2022 Quick Burger had capital expenditures of $3,051.
- 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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