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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) Net sales $ 27,575 Costs 17,577 Depreciation 1,410 Earnings before interest and taxes (EBIT) $ 8,588 Interest expense 525 Pretax income 8,063 Federal taxes (@218) 1,693 Net income $ 6,370 2018 $ 391 3,151 $ 3,542 Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) 2019 2018 Liabilities and Shareholders' Equity 2019 Current liabilities $ 2,344 $ 2,344 Debt due for repayment 1,383 1,343 Accounts payable $ 3,411 130 125 Total current liabilities $ 3,411 1,097 624 $ 4,954 $ 4,436 Long-term debt $ 13,641 $24,685 $ 22,843 Other long-term liabilities 3,065 2,812 2,661 Total liabilities $ 20, 117 2,991 3,107 Total shareholders' equity 15,325 $35, 442 $33,047 Total liabilities and shareholders' equity $ 35, 442 $12,142 2,965 $18,649 14,398 $33,047 In 2019 Quick Burger had capital expenditures of $3,057. 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 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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