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Sweeter Enterprises Inc, has net cash fiows from operating activities of $283,000. Cash fiows used for investments in property, plant, and equipment totaled $62,000, of
Sweeter Enterprises Inc, has net cash fiows from operating activities of $283,000. Cash fiows used for investments in property, plant, and equipment totaled $62,000, 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 fow to detersune whether or not to give Sweeter Enterprises Inc; a loan? Free cash fow is often used to measure the financial strength of a business. The free cash flow that a business has, the easier if will be for the company to pay the interest on the loan and regay the loan principal. Sweeter's free cash flow is 1 which is very
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