Connor Designs Company Has Cash Flows for Operating Activities of $425,000

question 167

Essay

Connor Designs Company has cash flows for operating activities of $425,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this investment was used to replace machinery to maintain its current operations.
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What is the free cash flow for Connor Designs?

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Definitions:

Adipose Tissue

A loose connective tissue composed primarily of adipocytes, responsible for storing energy as fat.

Glycogen Formation

The process by which glucose molecules are linked together to form glycogen, the storage form of glucose in animals.

Ecdysiotropin

A hormone that stimulates the process of ecdysis, or molting, in arthropods.

Ecdysone

See molting hormone.