Part 1

Required

Refer to WestJet’s statement of cash flows in Appendix II at the end of the textbook and answer the following questions.

a. Identify WestJet’s largest cash outflow during 2017.

b. What was the largest cash inflow during 2017?

c. Under the operating section of the statement of cash flows, WestJet shows an increase in non-cash working capital of $237,663 (thousand). What is non-cash working capital?

d. Compare the Cash and cash equivalents, end of year for 2017 as it appears on the statement of cash flows to the Cash and cash equivalents balance that appears on the December 31, 2017, Statement of Financial Position. Are these amounts the same or different? Explain.

Part 2

Required

Refer to the statements of cash flows for each of Indigo and Telus in Appendix II and answer the following questions.

a. Indigo reported profit of $21,800,000 on its 2018 statement of cash flows, and cash flows from operations of $28,378,000, a decrease of $7,235,000. Telus shows on its statement of cash flows where the profit for the year ended December 31, 2017, was reported as $1,479,000,000 with cash flows from operations of $3,947,000,000 an increase of $728,000,000 from 2016. What does this comparison indicate for both companies’ cash flows from operating activities? What are the major differences between the cash flow from operations and the operating profit for each company?

b. Indigo showed $4,904,000 was the cash from financing activities for the year ended March 31, 2018, while Telus showed cash used of $227,000,000 for the year ended December 31, 2017. Compare and contrast these companies’ use of cash for financing activities.