vv.SubjectFinance INCOME STATEMENT OF QUICK BURGER CORPORATION,(Figures in $ millions)Net salesCostsDepreciationEarnings before interest and taxes (EBIT)Interest expensePretax incomeFederal taxes (@21%)Net incomeAssetsCurrent assetsCash and marketable securitiesReceivablesInventoriesOther current assetsTotal current assetscurrFixed assetsProperty, plant, and equipmentIntangible assets (goodwill)Other long-term assetsTotal assets20222022$ 27,58217,5841,417$ 8,581BALANCE SHEET OF QUICK BURGER CORPORATION, 2022(Figures in $ millions)2021$ 2,3511,3901371,104$ 4,9825328,0491,690$ 6,359$ 24,6922,8192,998$ 35,491In 2022 Quick Burger had capital expenditures of $3,064.$ 2,3511,350132631$ 4,464Liabilities and Shareholders' EquityCurrent liabilitiesDebt due for repaymentAccounts payableTotal current liabilitiesLong-term debt$ 22,850Other long-term liabilities2,668Total liabilities3,114Total shareholders' equity$ 33,096 Total liabilities and shareholders' equity2022$ 3,418$3,418$ 13,6483,072$ 20,13815,353$ 35,4912021$ 4123,158$ 3,570$ 12,1492,972$ 18,69114,405$ 33,096 In 2022 Quick Burger had capital expenditures of $3,064.a. Calculate Quick Burger's free cash flow in 2022.Note: Enter your answer in millions.b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.)Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.c. What would the company's free cash flow have been if it was all-equity financed?Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.> Answer is complete but not entirely correct.a. Free cash flow$ 7,776 millionb. Additional tax$3,224.31 x millionc. Free cash flow$4.552 million

Free cash flow represents the amount of cash produced by a firm from its normal business operations.

In 2022 Quick Burger had capital expenditures of $3,064. a. Calculate Quick Burger's free cash flow in 2022. Note: Enter your answer in millions. b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c. What would the company's free cash flow have been if it was all-equity financed? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number. X Answer is complete but not entirely correct. a. Free cash flow b. Additional tax c. Free cash flow $ 7,776 $ 3,224.31 $ 4,552 million million million

In 2022 Quick Burger had capital expenditures of $3,064. a. Calculate Quick Burger's free cash flow in 2022. Note: Enter your answer in millions. b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. c. What would the company's free cash flow have been if it was all-equity financed? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number. X Answer is complete but not entirely correct. a. Free cash flow b. Additional tax c. Free cash flow $ 7,776 $ 3,224.31 $ 4,552 million million million

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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