WIn 2022 Quick Burger had capital expenditures of $3,053.a. Calculate Quick Burger's free cash flow in 2022.Note: Enter your answer in millions.b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.)Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.c. What would the company's free cash flow have been if it was all-equity financed?Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.a. Free cash flowb. Additional taxc. Free cash flowmillionmillionmillionities and shareholders' equity15,309$ 35,41414,394$ 33,019 mework i0encesMcGrawHillINCOME STATEMENT OF QUICK BURGER CORPORATION, 2022(Figures in $ millions)Net salesCostsDepreciationEarnings before interest and taxes (EBIT)Interest expensePretax incomeFederal taxes (@ 21%)Net incomeAssetsCurrent assetsCash and marketable securitiesReceivablesInventoriesOther current assetsTotal current assetsFixed assetsProperty, plant, and equipmentIntangible assets (goodwill)Other long-term assetsTotal assetsa. Free cash flowb. Additional taxc. Free cash flowmillionmillionmillion$ 27,57117,5731,406$ 8,59252120228,0711,695$ 6,376BALANCE SHEET OF QUICK BURGER CORPORATION, 2022(Figures in $ millions)2021$ 2,3401,3791261,093$ 4,938$ 24,6812,8082,987$ 35,414$ 2,3401,339121620$ 4,420Saved$ 22,8392,6573,103Liabilities and Shareholders' EquityCurrent liabilitiesDebt due for repaymentLong-term debtOther long-term liabilitiesTotal liabilitiesTotal shareholders' equity$ 33,019 Total liabilities and shareholders' equity< Prev***********Accounts payableTotal current liabilitiesIn 2022 Quick Burger had capital expenditures of $3,053.a. Calculate Quick Burger's free cash flow in 2022.Note: Enter your answer in millions.b. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.)Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.c. What would the company's free cash flow have been if it was all-equity financed?Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole number.5 of 52022NextSHARROAK$ 3,407$ 3,407-$ 13,6373,061$ 20,10515,309$ 35,414Help2021Save$ 3793,147$ 3,526$ 12,1382,961$ 18,62514,394$ 33,019C

Free cash flow are calculated by adding all non cash expenses from net income calculated as per…

work i = aw 11 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 a. Free cash flow b. Additional tax c. Free cash flow $ 27,571 17,573 1,406 $ 8,592 2022 million million million 521 8,071 1,695 $ 6,376 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 $ 2,340 1,379 126 1,093 $ 4,938 In 2022 Quick Burger had capital expenditures of $3,053. a. Calculate Quick Burger's free cash flow in 2022. Note: Enter your answer in millions. $ 24,681 2,808 2,987 $ 35,414 $ 2,340 1,339 Saved 121 620 $ 4,420 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment < Prev Accounts payable Total current liabilities Long-term debt $ 22,839 Other long-term liabilities 2,657 Total liabilities 3,103 Total shareholders' equity $ 33,019 Total liabilities and shareholders' equity 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. 5 of 5 2022 Next > $3,407 $ 3,407 $ 13,637 3,061 $ 20,105 15,309 $ 35,414 Help 2021 $ 379 3,147 $ 3,526 $ 12,138 2,961 Save $ 18,625 14,394 $ 33,019 C

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