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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012 INCOME STATEMENT OF MCDONALD'S CORP., 2012 (Figures in 5

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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012 INCOME STATEMENT OF MCDONALD'S CORP., 2012 (Figures in 5 millions) Net sales 27,574 17,576 lation 1,409 Earnings before interest and taxes (EBIT) Interest expense 8,589 524 Pretax income Taxes 8,065 2,628 Net income 5,437 2012 2011 Assets Current assets Cash and marketable securities Receivables BALANCE SHEET OF MCDONALD'S CORP. 2012 (Figures in $ millions) 2012 2011 Liabilities and Shareholders' equity Current liabilities 2,343 2,343 Debt due for repayment 1,382 1,342 Accounts payable 128 124 Total current liabilities 1,096 623 3,410 388 3,150 3,410 3,538 4,950 4,432 Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Long-term debt Other long-term liabilities 13,640 3,064 12,141 2,964 24,684 2,811 2,990 35,435 22,842 2,660 3.106 33,040 Total liabilities Total shareholders' equity Total liabilities and shareholders' equity 20,114 15,321 35,435 18,643 14,397 33,040 Total assets In 2012 McDonald's had capital expenditures of $3,056. a. Calculate McDonald's free cash flow in 2012. (Enter your answer in millions.) Free cash flow million b. If McDonald's was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35% on the revised protax income.) (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.) Additional tax million

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