The Seymour Corp attempted to increase sales rapidly in 20X1 by offering a new, low-cost product line designed to appeal to credit customers in relatively poor financial condition. The company sold no new stock during the year but paid dividends of $3,000,000. Depreciation for the year was $7,851,000, and no fixed assets were retired or sold. The firm had the following financial statements for 20X1.

Seymour Corp.
Balance Sheet
For the period ended 12/31/X1 ($000)
				ASSETS
		12/31/X0			12/31/X1
Cash		$	2,748		$	1,003
Receivables			19,046			24,917
Inventory			10,082			15,242
CURRENT ASSETS		$	31,876		$	41,162
Fixed assets
Gross		$	82,936		$	99,264
Accum. deprec.			(60,823)			(68,674)
Net		$	22,113		$	30,590
TOTAL ASSETS		$	53,989		$	71,752
				LIABILITIES & EQUITY
Accts payable		$	3,143		$	6,511
Accruals			741			886
CURRENT LIABILITIES		$	3,884		$	7,397
Long-term debt		$	36,010		$	48,909
Equity			14,095			15,446
TOTAL CAPITAL		$	50,105		$	64,355
TOTAL LIABILITIES AND EQUITY		$	53,989		$	71,752

Seymour Corp.
Income Statement
For the period ended 12/31/X1
($000)
Revenue		$	84,369
COGS			39,875
Gross margin		$	44,494
Expenses		$	34,060
EBIT		$	10,434
Interest			3,563
EBT		$	6,871
Tax			2,520
EAT		$	4,351

Without preparing a statement of cash flows, examine the changes in each balance sheet account and summarize in rough terms where Seymour got its cash and what it spent the money on. Include the sum of net income and depreciation as a source of cash. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

Construct a statement of cash flows for Seymour Corp. Enter your answers in thousands. For example, an answer of $1.2 million should be entered as 1200, not 1200000. Use a minus sign, to indicate any decreases in cash or cash outflows. If an amount is zero, enter "0".

Seymour Corp
Statement of Cash Flows
For the period ended 12/31/XI
($000)
Operating Activities
Net Income	$
Depreciation	$
Net changes in current accounts	$
Cash from operating activities	$
Investing Activities
Increase in Gross Fixed Assets	$
Cash from investing activities	$
Financing activities
Increase in long term debt	$
Dividend	$
Sale of stock	-
Cash from financing activities	$
Net Cash Flow	$
Reconciliation
Beginning cash balance	$
Net Cash Flow	$
Ending cash balance	$