(Solution) - Hacienda Tile Company has 100 000 shares of common stock issued -(2025 Original AI-Free Solution)

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Hacienda Tile Company has 100,000 shares of common stock issued and outstanding and 1,000 shares of 8%, $100 par value preferred stock issued and outstanding. Hacienda had cash flows from operating activities of $120,000. Cash flows used for investments in property, plant, and equipment totaled $45,000, of which 60% of this investment was used to replace existing capacity. A cash dividend of $0.20 per share was declared and paid on common stock.
Determine the free cash flow for Hacienda Tile Company.