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	27,587
Costs	17,589
Depreciation	1,422
Earnings before interest and taxes (EBIT)	8,576
Interest expense	537
Pretax income	8,039
Taxes	2,654
Net income	5,385

BALANCE SHEET OF MCDONALDS CORP., 2012
(Figures in $ millions)
Assets	2012		2011		Liabilities and Shareholders' equity	2012		2011
Current assets									Current liabilities
Cash and marketable securities		2,356				2,356			Debt due for repayment						427
Receivables		1,395				1,355			Accounts payable		3,423				3,163
Inventories		142				137			Total current liabilities		3,423				3,590
Other current assets		1,109				636
Total current assets		5,002				4,484
Fixed assets									Long-term debt		13,653				12,154
Property, plant, and equipment		24,697				22,855			Other long-term liabilities		3,077				2,977
Intangible assets (goodwill)		2,824				2,673			Total liabilities		20,153				18,721
Other long-term assets		3,003				3,119			Total shareholders equity		15,373				14,410
Total assets		35,526				33,131			Total liabilities and shareholders equity		35,526				33,131

In 2012 McDonalds had capital expenditures of $3,069.

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.)

please show all workings for this answer.

question 2

What would be the marginal and average tax rates for a married couple with taxable income of $90,900? For an unmarried taxpayer with the same income? Use Table 3.7. (Do not round intermediate calculations. Enter the marginal tax rates as a whole percent. Enter the average tax rates as a percent rounded to 2 decimal places.)

(please show how you arrive at your answer for this question also)

	Marginal tax rate	Average tax rate
Married couple	%	%
Single person	%	%

Additional tax

$ million