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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
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2022. INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022 Net sales Costs Depreciation (Figures in $ millions). Earnings before interest and taxes (EBIT) Interest expense Pretax income Federal taxes (@21%) Net income $ 27,569 17,571 1,404 $8,594 519 8,075 1,696 $6,379 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in 5 millions). 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 2022 2021 Liabilities and Shareholders' Equity Current liabilities 2022 2021 Debt due for repayment 1,337 Accounts payable 119 $3,405 $3,405 $ 373 3,145 $3,518 $2,338 1,377 124 $ 2,338 618 $ 4,412 $22,837 Total current liabilities Long-term debt Other long-term liabilities 2,655 Total liabilities 1,091 $ 4,930 $24,679 2,806 2,985 3,101 Total shareholders' equity $ 35,400 $ 33,005 Total 11abilities and shareholders' equity In 2022 Quick Burger had capital expenditures of $3,051 a. Calculate Quick Burger's free cash flow in 2022 Note: Enter your answer in millions. $13,635 3,059 $ 20,099 15,301 $ 35,400 $12,136 2,959 $18,613 14,392 $ 33,005 b. 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. c. What would the company's 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. a. Free cash flow b. Additional tax million million c. Free cash flow milion
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