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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 27,574
Costs 17,576
Depreciation 1,409
Earnings before interest and taxes (EBIT)8,589
Interest expense 524
Pretax income 8,065
Taxes 2,628
Net income 5,437
BALANCE SHEET OF MCDONALDS CORP., 2012
(Figures in $ millions)
Assets 20122011 Liabilities and Shareholders' equity 20122011
Current assets Current liabilities
Cash and marketable securities 2,3432,343 Debt due for repayment 388
Receivables 1,3821,342 Accounts payable 3,4103,150
Inventories 129124 Total current liabilities 3,4103,538
Other current assets 1,096623
Total current assets 4,9504,432
Fixed assets Long-term debt 13,64012,141
Property, plant, and equipment 24,68422,842 Other long-term liabilities 3,0642,964
Intangible assets (goodwill)2,8112,660 Total liabilities 20,11418,643
Other long-term assets 2,9903,106 Total shareholders equity 15,32114,397
Total assets 35,43533,040 Total liabilities and shareholders equity 35,43533,040
In 2012 McDonalds had capital expenditures of $3,056.
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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