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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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W 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. 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 flow b. Additional tax c. Free cash flow million million million ities and shareholders' equity 15,309 $ 35,414 14,394 $ 33,019
Transcribed Image Text:W 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. 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 flow b. Additional tax c. Free cash flow million million million ities and shareholders' equity 15,309 $ 35,414 14,394 $ 33,019
mework i 0 ences Mc Graw Hill 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 million million million $ 27,571 17,573 1,406 $ 8,592 521 2022 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 $ 24,681 2,808 2,987 $ 35,414 $ 2,340 1,339 121 620 $ 4,420 Saved $ 22,839 2,657 3,103 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity $ 33,019 Total liabilities and shareholders' equity < Prev *********** Accounts payable Total current liabilities 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. 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 SHARROAK $ 3,407 $ 3,407 - $ 13,637 3,061 $ 20,105 15,309 $ 35,414 Help 2021 Save $ 379 3,147 $ 3,526 $ 12,138 2,961 $ 18,625 14,394 $ 33,019 C
Transcribed Image Text:mework i 0 ences Mc Graw Hill 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 million million million $ 27,571 17,573 1,406 $ 8,592 521 2022 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 $ 24,681 2,808 2,987 $ 35,414 $ 2,340 1,339 121 620 $ 4,420 Saved $ 22,839 2,657 3,103 Liabilities and Shareholders' Equity Current liabilities Debt due for repayment Long-term debt Other long-term liabilities Total liabilities Total shareholders' equity $ 33,019 Total liabilities and shareholders' equity < Prev *********** Accounts payable Total current liabilities 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. 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 SHARROAK $ 3,407 $ 3,407 - $ 13,637 3,061 $ 20,105 15,309 $ 35,414 Help 2021 Save $ 379 3,147 $ 3,526 $ 12,138 2,961 $ 18,625 14,394 $ 33,019 C
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