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

question 143

Short Answer

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 existing capacity.
What is the free cash flow for Connor Designs?

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Definitions:

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing total liabilities by shareholders' equity.

Return On Equity

An indicator of how effectively a company uses investor funds to produce profit growth, determined by dividing the net income by the equity of shareholders.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a certain period of time.

Interval Measure

A statistical metric used to express the amount of variance or uncertainty between data points in a series.