Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 milliona) Net males $ 27.572 Costs 17.574 Depreciation 1.407 Earnings before interest and taxes (EBIT) $8,591 Interest expense 522 Pretax income 3,069 Federal taxes (@211) 1.694 Net income $ 6,375 2018 352 3.140 35,330 Annets Current assets Cash and marketable securities Receivable Inventorie Other current asseto Total currents Fixed ata Property, plant, and equipment Incangible assets (goodw111) Other long-term assets Total assets BALANCE SHEET OF QUICK BURGER CORP.. 2019 (Figures in milliona) 2019 2016 Liabilities and Shareholders' quity 2019 Current liabilities $ 2,34 $ 2.343 Debt due for repayment 1,380 2.340 Accounts payable $3,400 127 122 Total current liabilities 23.100 1,094 628 192 39420 Long-term debt $13,638 $24,652 $22.30 Other long term liabilities 3.062 2, 809 2,650 Tocal liabilitie 20.108 2,938 3,100 Total shareholders' y 15,313 $35,423 539, 026 Total liabilities and shareholders equity $35, 121 612,135 2.962 20,633 14.395 33,026 In 2019 Quick Burger had capital expenditures of $3,054, a. Calculate Quick Burger's free cash flow in 2019. (Enter your answer in millions.) Free cash flow million 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.) Additional tax million c. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.) Free cash flow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Company Accounting

Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford

8th Edition

0470819731, 978-0470819739

More Books

Students also viewed these Accounting questions

Question

Evaluate (-2x) squared and 2x squared when x = 3

Answered: 1 week ago

Question

8. Explain how to price managerial and professional jobs.

Answered: 1 week ago

Question

1. What is the difference between exempt and nonexempt jobs?

Answered: 1 week ago