INCOME STATEMENT OF QUICK BURGER CORPORATION, (Figures in $ millions) Net sales Costs Depreciation Earnings before interest and taxes (EBIT) Interest expense Pretax income Federal taxes (@21%) Net income 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 a. Free cash flow b. Additional tax c. Free cash flow 2022 2022 million 110.67 million 7,684 million $ 27,577 17,579 1,412 $ 8,586 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 $ 2,346 1,385 132 1,099 $ 4,962 Answer is complete but not entirely correct. S 7,573 S S $ 24,687 2,814 2,993 $ 35,456 527 8,059 1,692 $ 6,367 $ 2,346 1,345 127 626 $ 4,444 Liabilities and Shareholders' Equity Current liabilities. Debt due for repayment Accounts payable. Total current liabilities Long-term debt Other long-term liabilities Total liabilities $ 22,845 2,663 3,109 Total shareholders' equity $33,061 Total liabilities and shareholders' equity 2022 In 2022 Quick Burger had capital expenditures of $3,059. a. Calculate Quick Burger's free cash flow in 2022. (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%.) (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? (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.) $3,413 $3,413 $ 13,643 3,067 $ 20,123 15,333 $ 35,456 2021 $ 397 3,153 $ 3,550 $ 12,144 2,967 $ 18,661 14,400 $33,061
INCOME STATEMENT OF QUICK BURGER CORPORATION, (Figures in $ millions) Net sales Costs Depreciation Earnings before interest and taxes (EBIT) Interest expense Pretax income Federal taxes (@21%) Net income 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 a. Free cash flow b. Additional tax c. Free cash flow 2022 2022 million 110.67 million 7,684 million $ 27,577 17,579 1,412 $ 8,586 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 $ 2,346 1,385 132 1,099 $ 4,962 Answer is complete but not entirely correct. S 7,573 S S $ 24,687 2,814 2,993 $ 35,456 527 8,059 1,692 $ 6,367 $ 2,346 1,345 127 626 $ 4,444 Liabilities and Shareholders' Equity Current liabilities. Debt due for repayment Accounts payable. Total current liabilities Long-term debt Other long-term liabilities Total liabilities $ 22,845 2,663 3,109 Total shareholders' equity $33,061 Total liabilities and shareholders' equity 2022 In 2022 Quick Burger had capital expenditures of $3,059. a. Calculate Quick Burger's free cash flow in 2022. (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%.) (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? (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.) $3,413 $3,413 $ 13,643 3,067 $ 20,123 15,333 $ 35,456 2021 $ 397 3,153 $ 3,550 $ 12,144 2,967 $ 18,661 14,400 $33,061
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 12P
Related questions
Question
Subject: acounting
Transcribed Image Text:INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022
(Figures in $ millions)
Net sales
Costs
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Pretax income
Federal taxes (@ 21%)
Net income
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 CORPORATION, 2022
(Figures in $ millions)
2021
2022
a. Free cash flow
b. Additional tax
c. Free cash flow
$ 27,577
17,579
1,412
$ 8,586
527
8,059
1,692
$ 6,367
$
$
$
$ 2,346
1,385
132
1,099
$ 4,962
$ 24,687
2,814
2,993
$ 35,456
Answer is complete but not entirely correct.
7,573 million
110.67✔ million
7,684 X million
$ 2,346
1,345
127
626
$ 4,444
$ 22,845
Liabilities and Shareholders' Equity
Current liabilities
Debt due for repayment
Accounts payable
Total current liabilities
Long-term debt
Other long-term liabilities
2,663 Total liabilities
3,109 Total shareholders' equity
$ 33,061 Total liabilities and shareholders' equity
2022
In 2022 Quick Burger had capital expenditures of $3,059.
a. Calculate Quick Burger's free cash flow in 2022. (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%.) (Do
not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
$ 3,413
$ 3,413
c. What would the company's free cash flow have been if it was all-equity financed? (Do not round intermediate calculations. Enter
your answer in millions rounded to the nearest whole number.)
$ 13,643
3,067
$ 20,123
15,333
$ 35,456
2021
$ 397
3,153
$ 3,550
$ 12,144
2,967
$ 18,661
14,400
$ 33,061
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