Mediterranean Tile Company has cash flows from operating activities of $120,000. Cash flows used for investments in

Question:

Mediterranean Tile Company has cash flows from operating activities of $120,000. Cash flows used for investments in property, plant, and equipment totaled $45,000, of which 60% of this investment was used to replace existing capacity.
Determine the for Mediterranean Tile Company.

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...