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Sweeter Enterprises Inc. has cash flows from operating activities of $438,000. Cash flows used for investments in property, plant, and equipment totaled $92,000, of which

Sweeter Enterprises Inc. has cash flows from operating activities of $438,000. Cash flows used for investments in property, plant, and equipment totaled $92,000, of which 70% 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? 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 $ , which is very .

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