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    Lorax Enterprises cash balance increase

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    Lorax Enterprises saw its cash balance increase from $ 800 million at the end of last year to $ 1 billion at the end of this year. During the year, the firm reported net income of $ 300 million, after depreciation of $ 100 million. In addition, the firm had capital expenditures of $ 250 million and paid out a dividend of $ 100 million; there were no working capital requirements. What was the net debt issue made by Lorax during the year? (You can assume no new stock issues or divestitures were made during the year)

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    Solution Summary

    Lorax enterprise cash balances for increase functions are provided.