Question: Sweeter Enterprises Inc. has net cash flows from operating activities of $ 4 1 7 , 0 0 0 . Cash flows used for investments

Sweeter Enterprises Inc. has net cash flows from operating activities of $417,000. Cash flows used for investments in property, plant, and equipment totaled $96,000, of which 75% of this investment was used to replace existing capacity.
a. Determine the free cash flow for Sweeter Enterprises Inc.
$fill in the blank 1
b. How might a lender use free cash flow to determine whether or not to give Sweeter Enterprises Inc. a loan?
Free cash flow is often used to measure the financial strength of a business. The
free cash flow that a business has, the easier it will be for the company to pay the interest on the loan and repay the loan principal. Sweeters free cash flow is $fill in the blank 3
, which is very
.

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