Matthias Motors, Inc. has cash flows from operating activities of $900,000. Cash flows used for investments in

Question:

Matthias Motors, Inc. has cash flows from operating activities of $900,000. Cash flows used for investments in property, plant, and equipment totaled $550,000, of which 75% of this investment was used to replace existing capacity. Determine the for Matthias Motors, Inc.

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...