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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 $

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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 $ millions) Net sales 27,582 Costs 17,584 Depreciation 1,417 8,581 Earnings before interest and taxes (EBIT) Interest expense 532 Pretax income Taxes 8,049 2,644 Net income 5,405 2012 2011 Assets Current assets Cash and marketable securities Receivables BALANCE SHEET OF MCDONALD'S CORP., 2012 (Figures in $ millions) Liabilities and Shareholders' 2012 2011 equity Current liabilities 2,351 2,351 Debt due for repayment 1,390 1,350 Accounts payable 412 3,418 3,158 Total current liabilities 3,418 3,570 Inventories Other current assets 137 1,104 132 631 4,982 4,464 Long-term debt 22,850 Other long-term liabilities 13,648 Total current assets Fixed assets Property, plant, and equipment 12,149 24,692 3,072 2,972 2,819 2,668 20,138 18,691 Intangible assets (goodwill) Other long-term assets Total liabilities Total shareholders' equity 2,998 3,114 15,353 14,405 Total assets 35,491 33,096 Total liabilities and shareholders' equity 35,491 33,096 In 2012 McDonald's had capital expenditures of $3,064. a. Calculate McDonald's free cash flow in 2012. (Enter your answer in millions.) Free cash flow $ million 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 pretax income.) (Do not round b. intermediate calculations. Enter your answer in millions rounded to the nearest whole number.) Additional tax $ million

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