Steele Company had a $54,000 cash balance at the beginning of 2011. The company reported net earnings

Question:

Steele Company had a $54,000 cash balance at the beginning of 2011. The company reported net earnings of $120,000 for the year. Included in the company's statement of earnings were depreciation expense of $60,000, interest expense of $20,000, and income tax expense of $44,000. The following also occurred in 2011:
1. increased by $34,000.
2. Inventory increased by $ 18,000.
3. Equipment costing $120,000 was purchased; $50,000 of this amount was paid in cash and a mortgage was signed for the remaining $70,000.
4. decreased by $20,000.
5. Wages payable decreased by $12,000.
6. Unearned revenue increased by $10,000.
7. Income tax payable decreased by $8,000.
8. Interest payable increased by $5,000.
9. Long-term notes payable of $10,000 were repaid.
10. Cash dividends of $30,000 were declared and paid.
Required:
To help Steele Company's management team better understand its cash flows, do the following:
a. Calculate the cash generated from operating activities.
b. Calculate the cash flow related to investing activities.
c. Calculate the cash flow related to financing activities.
d. Prepare a statement of cash flows for Steele Company for 2011. Accounts Payable
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