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 free cash flow for Sweeter Enterprises Inc.
b. How might a lender use free cash flow to determine whether or not to give Sweeter Enterprises Inc. a loan?



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  • CreatedFebruary 28, 2014
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