Please do not give solution in image format ? The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2019.INCOME STATEMENT OF QUICK BURGER CORP., 2019(Figures in $ millions)Net salesCostsDepreciationEarnings before interest and taxes (EBIT)Interest expensePretax incomeFederal taxes (@21%)Net incomeAssetsCurrent assetsCash and marketable securitiesReceivablesInventoriesOther current assetsTotalcurrent assetsFixed assetsProperty, plant, and equipmentIntangible assets (goodwill)Other long-term assetsTotal assets2019$ 2,3401,3791261,093$ 4,938$ 27,57117,5731,406$ 8,592BALANCE SHEET OF QUICK BURGER CORP., 2019(Figures in $ millions)2018$24,6812,8082,987$35,4145218,0711,695$ 6,376$ 2,3401,339121620$4,420$22,8392,6573,103$33,019In 2019 Quick Burger had capital expenditures of $3,053.Liabilities and Shareholders' EquityCurrent liabilitiesDebt due for repaymentAccounts payableTotal current liabilities2019$ 3793,147$3,407$3,407 $3,526$13,6373,061$20, 1052018Long-term debtOther long-term liabilitiesTotal liabilitiesTotal shareholders' equity15,309Total liabilities and shareholders' equity $35,414$12, 1382,961$18,62514,394$33,019 a. Calculate Quick Burger's free cash flow in 2019. (Enter your answer in millions.)Free cash flowb. If Quick Burger was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 21%.) (Donot round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)Additional taxmillionFree cash flowmillionc. What would the company's free cash flow have been if it was all-equity financed? (Enter your answer in millions.)

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Answered: a. Calculate Quick Burger's free cash…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 54CE

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[The following information applies to the questions displayed below.] 2021 2020 2019 Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings 2021 2020 2019 $ 483,981 $ 370,769 $ 257,300 291,357 234,326 164,672 136,443 51,166 32,628 83,794 52,649 10,793 $ 41,856 192,624 68,725 43,558 Numerator: 112,283 80,341 14,943 $ 65,398 1 1 1 1 1 December 31 2021 $ 57,843 0 Current Ratio $ 23,890 $ 20,253 $ 19,708 66,000 66,000 48,000 8,250 8,250 5,333 65,490 41,423 39,574 Total liabilities and equity $ 163,630 $ 135,926 $ 112,615 Required: 1. Complete the below…
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2022. 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 $ 27,583 17,585 1,418 $ 8,580 533 8,047 1,690 $ 6,357 BALANCE SHEET OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) 2021 2022 a. Free cash flow b. Additional tax c. Free cash flow million million million $ 2,352 1,391 138 1,105 $ 4,986 In 2022 Quick Burger had capital expenditures of $3,065. a. Calculate Quick Burger's free cash flow in 2022. Note: Enter your answer in millions. $ 24,693 2,820 2,999 $ 35,498 $ 2,352 1,351 133 632 $…
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