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undefined The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019. INCOME STATEMENT OF QUICK BURGER CORP., 2019
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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 $ millions) Net sales $ 27,582 Costs 17,584 Depreciation 1,417 Earnings before interest and taxes (EBIT) $ 8,581 Interest expense 532 Pretax income 8,049 Federal taxes (@21%) Net income $ 6,359 1,690 2019 2018 1,390 $ 3,418 $ 3,418 $ 412 3,158 $ 3,570 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 BALANCE SHEET OF QUICK BURGER CORP., 2019 (Figures in $ millions) 2019 2018 Liabilities and Shareholders' Equity Current liabilities $ 2,351 $ 2,351 Debt due for repayment 1,350 Accounts payable 137 132 Total current liabilities 1,104 631 $ 4,982 $ 4,464 Long-term debt $24,692 $22,850 Other long-term liabilities 2,819 2,668 Total liabilities 2,998 3,114 Total shareholders' equity $35,491 $33,096 Total liabilities and shareholders' equity $ 13,648 3,072 $ 20,138 15,353 $ 35,491 $12,149 2,972 $18,691 14,405 $33,096 In 2019 Quick Burger had capital expenditures of $3,064. In 2019 Quick Burger had capital expenditures of $3,064. 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 $ 111.30 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 flowStep by Step Solution
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