Refer to the financial statements in Appendix II.

Part 1

Required

Answer the following questions regarding Indigo.

a. Did retained earnings increase or decrease from April 1, 2017 to March 31, 2018?

b. On what statement can you find Indigo’s earnings per share? Show the calculation that might have been used to calculate the EPS for 2017 and 2018.

Part 2

Required

Answer the following questions regarding WestJet.

a. A review of WestJet’s statement of changes in equity for the year ending December 31, 2017 shows that it repurchased shares of $16,870,000 with a reduction in retained earnings. Explain what a share repurchase is.

b. Why do you think WestJet is repurchasing these shares?

c. Identify in note 11 how many shares were repurchased. Also identify how many shares were issued pursuant to compensation plans.