Deschamps Ltd. is headquartered in Edmonton, AB. They are publicly-traded and follow IFRS. As such, they've adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Their Comparative Statement of Financial Position and Income Statement for the year ended December 31, 2022 are shown below:
Deschamps Ltd.
Statement of Financial Position
As at December 31st
	2022	2021
Cash	46.000	56.000
Cash Equivalents	36.000	45.000
Accounts Receivable	348.000	271.000
Prepaid Insurance	16.000	35.000
Inventory	398.000	350.000
Supplies	13.000	17.000
Long-Term Investment, at equity (Note 7)	418.000	400.000
Land (Note 6)	640.000	500.000
Buildings (Note 3)	1.310.000	1.280.000
Accumulated Depreciation - Buildings	(400.000)	(360.000)
Equipment (Note 4)	632.000	640.000
Accumulated Depreciation - Equipment	(160.000)	(135.000)
Patent	100.000	100.000
Accumulated Amortization - Patent	(40.000)	(35.000)
	3.357.000	3.164.000
Temporary Bank Overdrafts	-	93.000
Accounts Payable	165.000	150.000
Income Tax Payable	26.000	35.000
Accrued Liabilities	57.000	41.000
Dividends Payable	20.000	50.000
Long-Term Notes Payable	420.000	460.000
Bonds Payable	999.000	995.000
Preferred Shares (Note 2)	486.000	380.000
Common Shares	746.000	666.000
Retained Earnings	438.000	294.000
	3.357.000	3.164.000
Deschamps Ltd.
Income Statement
For the years ending December 31, 2022
Revenues
Sales Revenue	1.090.500
Investment Income	90.000
	1.180.500
Expenses and Losses
Cost of Goods Sold	387.600
Sales Commission Expense	108.000
Operating Expenses (Note 5)	166.000
Salaries and Wages Expense	104.000
Interest Expense	95.000
Loss on Disposal of Equipment (Note 4)	11.000
Income Tax Expense	96.000
	967.600
Net Income	212.900
The following is additional information about Deschamps's transactions during the year ended December 31, 2022.
1. The cash equivalents are typically term deposits that are very liquid and mature on average in 60 days. The bank overdrafts are temporary and reverse within a few days. Deschamps has opted to show these as cash and cash equivalents on its statement of cash flows.
2. During the year, preferred shares with a carrying amount of $27,000 were converted to common shares.
3. There were no disposals of buildings during the year 2022.
4. Equipment with an original cost of $53,000 and carrying amount of $19,000 was sold at a loss during the year.
5. All depreciation and amortization expense is included in operating expenses.
6. During the year, Deschamps obtained land with a fair value of $100,000 in exchange for its preferred shares.
7. Investment income includes the equity earnings of $62,000 from a long-term investment accounted for using the equity method and from interest revenue on the short-term investments referred to in Note 1 above.
REQUIRED:
A. Prepare the Statement of Cash Flows for the year ended December 31, 2022, for Deschamps Ltd. using the indirect method. Your response should include a table that shows the details of the cash and cash equivalents accounts at the end of each period. Be sure to show all supporting calculations and reconciliations for your cash flow statement
B. Prepare the operating activities section of the statement using the direct format, showing all supporting calculations.