Iglesias Enterprises, Inc. has cash flows from operating activities or $385,000. Cash flows used for investments in

Question:

Iglesias Enterprises, Inc. has cash flows from operating activities or $385,000. Cash flows used for investments in property, plant, and equipment totaled $145,000, of which 80% of this investment was used to replace existing capacity.
a. Determine the for Iglesias Enterprises, Inc.
b. How might a lender use to determine whether or not to give Iglesias Enterprises, Inc. a loan?

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...