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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

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 curr Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets 2022 2022 $ 27,582 17,584 1,417 $ 8,581 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 $ 2,351 1,390 137 1,104 $ 4,982 532 8,049 1,690 $ 6,359 $ 24,692 2,819 2,998 $ 35,491 In 2022 Quick Burger had capital expenditures of $3,064. $ 2,351 1,350 132 631 $ 4,464 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Accounts payable Total current liabilities Long-term debt $ 22,850 Other long-term liabilities 2,668 Total liabilities 3,114 Total shareholders' equity $ 33,096 Total liabilities and shareholders' equity 2022 $ 3,418 $3,418 $ 13,648 3,072 $ 20,138 15,353 $ 35,491 2021 $ 412 3,158 $ 3,570 $ 12,149 2,972 $ 18,691 14,405 $ 33,096
Transcribed Image Text: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 curr Fixed assets Property, plant, and equipment Intangible assets (goodwill) Other long-term assets Total assets 2022 2022 $ 27,582 17,584 1,417 $ 8,581 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 $ 2,351 1,390 137 1,104 $ 4,982 532 8,049 1,690 $ 6,359 $ 24,692 2,819 2,998 $ 35,491 In 2022 Quick Burger had capital expenditures of $3,064. $ 2,351 1,350 132 631 $ 4,464 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Accounts payable Total current liabilities Long-term debt $ 22,850 Other long-term liabilities 2,668 Total liabilities 3,114 Total shareholders' equity $ 33,096 Total liabilities and shareholders' equity 2022 $ 3,418 $3,418 $ 13,648 3,072 $ 20,138 15,353 $ 35,491 2021 $ 412 3,158 $ 3,570 $ 12,149 2,972 $ 18,691 14,405 $ 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 million b. Additional tax $ 3,224.31 x million c. Free cash flow $ 4.552 million
Transcribed Image Text: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 million b. Additional tax $ 3,224.31 x million c. Free cash flow $ 4.552 million
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