Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash flows used for investments in

Question:

Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash flows used for investments in property, plant, and equipment totaled $210,000, of which 75% of this investment was used to replace existing capacity.
a. Determine the for Sweeter Enterprises Inc.
b. How might a lender use to determine whether or not to give Sweeter Enterprises Inc. a loan?

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...