Free Cash Flow Sweeter Enterprises Inc. has cash flows from operating activities of $302,000. Cash flows used for investments in property, plant, and equipment totaled $57,000, of which 65% of this investment was used to replace existing capacity. a. Determine the free cash flow for Sweeter Enterprises Inc. $ 284,200 X 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 more 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. Sweeter's free cash flow is $ which is very strong Feedback

Sweeter Enterprises Inc. has cash flows from operating activities of $302,000. Cash flows used for investments in property, plant, and equipment totaied $57,000, of which 65% of this investment was used to replace existing capacity. a. Determine the free cash flow for Sweeter Enterprises Inc. x 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 princlpal. Sweeter's free cash flow is 5 which is very Sweeter Enterprises Inc. has cash flows from operating activities of $302,000. Cash flows used for investments in property, plant, and equipment totaied $57,000, of which 65% of this investment was used to replace existing capacity. a. Determine the free cash flow for Sweeter Enterprises Inc. x 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 princlpal. Sweeter's free cash flow is 5 which is very