Free Cash Flow Sweeter Enterprises Inc. has cash flows from operating activities of $539,000. Cash...
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Free Cash Flow 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. $381,500 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 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 free cash flow , which is very
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