Question: Sweeter Enterprises inc, has net cash flows from operating activities of $328,000. Cash flows used for investments in property, plant, and equipment fotaled $72,000, of
Sweeter Enterprises inc, has net cash flows from operating activities of $328,000. Cash flows used for investments in property, plant, and equipment fotaled $72,000, of which 80% 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 fow to determine whether or not to give Sweeter Enterprises the; a loan? Free cash fow is often used to measure the financial strength of a business. The to pay the interest on the loan and repay the loan principal. Sweeter's free cash flow is s free cash flow that a business has, the easier it wili be for the company , which is very
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
