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The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2 0 1 2 . INCOME STATEMENT OF MCDONALD S

The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012.
INCOME STATEMENT OF MCDONALDS CORP., 2012
(Figures in $ millions)
Net sales 27,571
Costs 17,573
Depreciation 1,406
Earnings before interest and taxes (EBIT)8,592
Interest expense 521
Pretax income 8,071
Taxes 2,622
Net income 5,449
BALANCE SHEET OF MCDONALDS CORP., 2012
(Figures in $ millions)
Assets 20122011 Liabilities and Shareholders' equity 20122011
Current assets Current liabilities
Cash and marketable securities 2,3402,340 Debt due for repayment 379
Receivables 1,3791,339 Accounts payable 3,4073,147
Inventories 126121 Total current liabilities 3,4073,526
Other current assets 1,093620
Total current assets 4,9384,420
Fixed assets Long-term debt 13,63712,138
Property, plant, and equipment 24,68122,839 Other long-term liabilities 3,0612,961
Intangible assets (goodwill)2,8082,657 Total liabilities 20,10518,625
Other long-term assets 2,9873,103 Total shareholders equity 15,30914,394
Total assets 35,41433,019 Total liabilities and shareholders equity 35,41433,019
In 2012 McDonalds had capital expenditures of $3,053.
a. Calculate McDonalds free cash flow in 2012.(Enter your answer in millions.)
Free cash flow $
million
b.
If McDonalds 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 intermediate calculations. Enter your answer in millions rounded to the nearest whole number.)
Additional tax $
million

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