The managerial balance sheet at the end of 2009 and 2010 is shown below for Ajax Incorporated.

End of 2009

Invested Capital		Capital Employed
Cash	$385	Short term Debt	$570
WCR	$4884	Long term financing	$6129
Net Fixed Assets	$1430	Long term debt	$1300
Total Invested Capital	$6699	Shareholder equity	$4829
		Total Capital Employed	$6699
End of 2010
Invested Capital		Capital Employed
Cash	$330	Short term Debt	$2100
WCR	$6710	Long term financing	$6535
Net Fixed Assets	$1595	Long term debt	$1200
Total Invested Capital	$8635	Shareholder equity	$5335
		Total Capital Employed	$8635

(a) How much more short term debt did the company take on from the end of 2009 to the end of 2010 ?

(b) How much more cash on hand does the company have at the end of 2010 than it did at the end of 2009 ?

(c) What is the change in Invested Capital from 2009 to 2010 ?

(d) How much of the change in Invested Capital from 2009 to 2010 was financed by increasing the short term debt ?

(e) If the company borrowed more money in 2010 by taking on more short term debt, why didnt the cash increase from 2009 to 2010 ?

(1) The cash was consumed by other things such as an increase in working capital

(2) The cash was consumed by other things such as a decrease in working capital

(f) Could the company could have also taken on additional long term debt or issued stock in order to raise the cash needed for financing the increase in working capital.

(1) Yes, it could have done so

(2) No, these actions would not provide cash

(16) Over the course of a year, a company has $220 million in cash flow from operations, it raises $45 million by issuing bonds and buys a chemical plant for $250 million from a competitor. What is the change in cash flow from these activities that were completed over the year?