Part 1:

Required

Answer the following questions by referring to the December 31, 2017, balance sheets for each of WestJet and Spin Master in Appendix II.

a. WestJet shows Advance ticket sales of $695,111 (thousand) under current liabilities. Explain what this is.

b. WestJet shows Current portion of long-term debt of $153,149 (thousand) under current liabilities. Explain what this is and why it is classified as a current liability. WestJet shows Long-term debt of $1,895,898 (thousand) under Non-current liabilities. Why is some of the debt listed as a current liability and the balance as non-current liabilities?

c. Spin Master’s trade payables and other liabilities at December 31, 2017, are $350,757,000. What percentage is this of total liabilities on the same date?

Part 2:

Required

Answer the following questions by referring to the December 31, 2017, balance sheet for Telus and the March 31, 2018 balance sheet for Indigo in Appendix II.

a. Telus shows a December 31, 2017, balance of $1,404,000,000 of current maturities of long term. Calculate the total long-term debt.

b. Calculate what percentage of Indigo’s assets at March 31, 2018, were financed by current liabilities.