Please, I need correct answers and clear explanation of the following b,c and e questions. Thanks,

Using the West Jet Financial statements, answer the following questions R1 2-4 p.106-109)

b. Why do you think West Jet does not report a cost of goods sold

c. Explain what Advanced ticket sales in the current liabilities section represents

e. How much did West Jet use in 2013 to acquire new aircraft? Which statement did you find this information on?

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Please follow these information:

RI2-4

(Determination of items from a Canadian company's financial statements)

Calgary-based WestJet Airlines Ltd. provides services throughout Canada and to some international destinations. Excerpts from its 2013 financial statements are in Exhibits 2-19A to 2-19C.

Exhibit 2-19A WESTJET AIRLINES LTD.'S 2013 CONSOLIDATED STATEMENT OF EARNINGS

Consolidated Statement of Earnings For the years ended December 31 (Stated in thousands of Canadian dollars, except per share amounts)
	Note	2013	2012
Revenue:
Guest		3,337,569	3,133,492
Other		324,628	293,917
		3,662,197	3,427,409
Operating expenses:
Aircraft fuel		1,039,448	992,787
Airport operations		459,465	424,911
Flight operations and navigational charges		410,052	376,050
Sales and distribution		356,988	333,106
Marketing, general and administration		222,567	202,398
Depreciation and amortization		200,840	185,401
Inflight		176,907	162,633
Aircraft leasing		175,646	173,412
Maintenance		169,197	154,406
Employee profit share		51,577	46,585
		3,262,687	3,051,689
Earnings from operations		399,510	375,720
Non-operating income (expense):
Finance income	15	17,848	18,391
Finance cost	15	(43,447)	(48,900)
Gain on foreign exchange		1,136	1,061
Gain (loss) on disposal of property and equipment		(2,962)	469
Loss on fuel derivatives			(6,512)
		(27,425)	(35,491)
Earnings before income tax		372,085	340,229
Income tax expense (recovery):
Current		154,964	66,230
Deferred		(51,601)	31,607
	11	103,363	97,837
Net earnings		268,722	242,392

Exhibit 2-19B WESTJET AIRLINES LTD.'S 2013 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Consolidated Statement of Financial Position At December 31 (Stated in thousands of Canadian dollars)
	Note	2013	2012
Assets
Current assets:
Cash and cash equivalents	5	1,256,005	1,408,199
Restricted cash	6	58,106	51,623
Accounts receivable	19	42,164	37,576
Prepaid expenses, deposits and other	19	133,263	101,802
Inventory	19	36,722	35,595
		1,526,260	1,634,795
Non-current assets:
Property and equipment	7	2,487,734	1,985,599
Intangible assets	8	58,691	50,808
Other assets	19	70,778	75,413
Total assets		4,143,463	3,746,615
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	19	543,167	460,003
Advance ticket sales	19	551,022	480,947
Non-refundable guest credits	19	46,975	47,859
Current portion of maintenance provisions	9	76,105	34,135
Current portion of long-term debt	10	189,191	164,909
		1,406,460	1,187,853
Non-current liabilities:
Maintenance provisions	9	142,411	145,656
Long-term debt	10	689,204	574,139
Other liabilities	19	8,834	9,914
Deferred income tax	11	306,714	356,748
Total liabilities		2,553,623	2,274,310
Shareholders' equity
Share capital	12	603,861	614,899
Equity reserves		69,079	69,856
Hedge reserves		105	(5,746)
Retained earnings		916,795	793,296
Total shareholders' equity		1,589,840	1,472,305
Total liabilities and shareholders' equity		4,143,463	3,746,615

Exhibit 2-19C WESTJET AIRLINES LTD.'S 2013 CONSOLIDATED STATEMENT OF CASH FLOWS

Consolidated Statement of Cash Flows For the years ended December 31 (Stated in thousands of Canadian dollars)
	Note	2013	2012
Operating activities:
Net earnings		268,722	242,392
Items not involving cash:
Depreciation and amortization		200,840	185,401
Change in maintenance provisions		26,610	31,378
Change in other liabilities		1,782	(383)
Amortization of hedge settlements		1,400	1,400
Loss on fuel derivatives			6,512
(Gain) loss on disposal of property and equipment		2,962	(469)
Share-based payment expense	12	14,533	12,815
Deferred income tax expense (recovery)		(51,601)	31,607
Unrealized foreign exchange gain		(12,020)	(1,487)
Change in non-cash working capital		298,697	208,110
Change in restricted cash		(6,484)	(3,282)
Change in other assets		(1,374)	(6,894)
Cash interest received		19,079	17,780
Cash taxes paid		(147,868)	(950)
Purchase of shares pursuant to compensation plans		(7,131)	(1,306)
		608,147	722,624
Investing activities:
Aircraft additions		(639,592)	(218,116)
Other property and equipment and intangible additions		(75,580)	(51,191)
		(715,172)	(269,307)
Financing activities:
Increase in long-term debt		318,075	72,995
Repayment of long-term debt		(178,647)	(162,678)
Decrease in obligations under finance leases			(75)
Shares repurchased	12	(112,362)	(112,065)
Dividends paid	13	(52,188)	(37,549)
Issuance of shares pursuant to compensation plans		106	198
Cash interest paid		(36,677)	(43,055)
Change in non-cash working capital		146	(6,815)
		(61,547)	(289,044)
Cash flow from operating, investing and financing activities		(168,572)	164,273
Effect of foreign exchange on cash and cash equivalents		16,378	321
Net change in cash and cash equivalents		(152,194)	164,594
Cash and cash equivalents, beginning of year		1,408,199	1,243,605
Cash and cash equivalents, end of year	5	1,256,005	1,408,199