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 giveSweeter Enterprises Inc. a loan?
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 giveSweeter Enterprises Inc. a loan?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 28BEB
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Sweeter Enterprises Inc. has
a. Determine the
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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