Free cash flow OBJ. 4 Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash
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Free cash flow OBJ. 4 Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash flows used for investments in property, plant, and equipment totaled $210,000, of which 75%
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 flow to determine whether or not to give Sweeter Enterprises Inc. a loan?
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Related Book For 
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac
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