The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019.
Question:
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$27,576Costs17,578Depreciation1,411Earnings before interest and taxes (EBIT)$8,587Interest expense526Pretax income8,061Federal taxes (@ 21%)1,693Net income$6,368
BALANCE SHEET OF QUICK BURGER CORP., 2019(Figures in $ millions)Assets20192018Liabilities and Shareholders' Equity20192018Current assetsCurrent liabilitiesCash and marketable securities$2,345$2,345Debt due for repayment$394Receivables1,3841,344Accounts payable$3,4123,152Inventories131126Total current liabilities$3,412$3,546Other current assets1,098625Total current assets$4,958$4,440Fixed assetsLong-term debt$13,642$12,143Property, plant, and equipment$24,686$22,844Other long-term liabilities3,0662,966Intangible assets (goodwill)2,8132,662Total liabilities$20,120$18,655Other long-term assets2,9923,108Total shareholders' equity15,32914,399Total assets$35,449$33,054Total liabilities and shareholders' equity$35,449$33,054
In 2019 Quick Burger had capital expenditures of $3,058.
a.Calculate Quick Burger's free cash flow in 2019.(Enter your answer in millions.)
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.)
c.What would the company's free cash flow have been if it was all-equity financed?(Enter your answer in millions.)