a. Calculate the various accruals on an item-by-item basis. For each accrual indicate the extent to which that accrual may contain a discretionary component and briefly explain why.

6. The comparative balance sheet of JSA Ltd. at June 30, 2013, is as follows: June 30, 2013 June 30, 2012 Assets Current assets: Accounts receivable (net) Inventories Prepaid expenses Capital assets (net) Long-term investments Prepaid development costs 35 2 113 37 2 40 $192 $60 53 1 114 39 2 39 $194 Liabilities and Shareholders' Equity Current liabilities: Bank indebtedness Accounts payable Customer advances Current portion of long-term debt Current portion of future incorre taxes $ 18 64 13 1 1 2 98 5 5 0 73 16 $192 Long-term debt Liability for future income taxes Share capital Retained earnings 71 8 8 2 1 86 3 3 6 71 28 $194 JSA Ltd.'s 2013 income statement is as follows: Sales $233 Expenses $184 35 4 14 3 Cost of sales Administrative and selling Research and development Depreciation and amortization Interest Loss before undernoted items Income tax recovery Provision for reorganization Net loss for the year Cash flow from operations for 2013 was $7. 240 (7) 7 (12) $(12)