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 2016 INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures

image text in transcribed

The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016 INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in millions) Net sales Costs Depreciation Earnings before interest and taxes (EBIT) Interest expense Pretax income Taxes $ 27,567 17,569 , 402 $ 8,596 8,079 2.614 $ 5,465 Net income BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions) Assets Current assets Cash and marketable securities Receivables Inventories Other current assets Total current assets Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets 2016 2015 Liabilities and Shareholders Equity 2016 2015 Current liabilities 2,336 Debt due for repayment 2,336 1,375 3,403 3,403 367 3,143 3,510 1,335 Accounts payable 122 1,089 4,922 117 Total current liabilities 616 4,404 13,633 3,057 20,093 15, 293 35, 386 12,134 2,957 18,601 14,390 32,991 Long-term debt 24,67722,835 Other long-term liabilities 2,804 2,983 35, 386 2,653 Total liabilities 3,099 Total shareholders' equity 32,991 Total liabilities and shareholders' equity In 2016 Quick Burger had capital expenditures of $3,049 a. Calculate Quick Burger's free cash flow in 2016. (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? (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? 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

Theoretical Foundations For Quantitative Finance

Authors: Luca Spadafora, Gennady P Berman

1st Edition

9813202475, 978-9813202474

More Books

Students also viewed these Finance questions