Palmer Ltd, is headquartered in Vancouver, BC. They are publicly-traded and fnllinicac. uch, they've adopted the policy of classifying ive Statement of Financial Position and Income The following is additional information about Paimer'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. Palmer 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 $18,000 were converted to common shares. 3. There were no disposals of bulidings during the year 2022. 4. Equipment with an original cost of $46,000 and carrying amount of $14,000 was sold at a loss during the year. 5. All depreciation and amortization expense is induded in operating expenses. 6. During the year, Paimer 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. A. Prepare the Statement of Cash Flows for the year ended December 31, 2022, for Paimer Ltd. using the indirect method. Your response should include a table that shows the detalls of the cash and cash equivalents accounts at the end of each period. Be sure to show all supporting calculations and reconcliations for your cash flow statementl (37 marks) 8. Prepare the operating activities section of the statement using the direct format, showing all supporting calculations. (17 marks) Palmer Ltd, is headquartered in Vancouver, BC. They are publicly-traded and fnllinicac. uch, they've adopted the policy of classifying ive Statement of Financial Position and Income The following is additional information about Paimer'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. Palmer 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 $18,000 were converted to common shares. 3. There were no disposals of bulidings during the year 2022. 4. Equipment with an original cost of $46,000 and carrying amount of $14,000 was sold at a loss during the year. 5. All depreciation and amortization expense is induded in operating expenses. 6. During the year, Paimer 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. A. Prepare the Statement of Cash Flows for the year ended December 31, 2022, for Paimer Ltd. using the indirect method. Your response should include a table that shows the detalls of the cash and cash equivalents accounts at the end of each period. Be sure to show all supporting calculations and reconcliations for your cash flow statementl (37 marks) 8. Prepare the operating activities section of the statement using the direct format, showing all supporting calculations. (17 marks)
