The following condensed financial information is available for WestJet Airlines:

Instructions
(a) Perform a horizontal percent of base year analysis of WestJet's income statement and balance sheet, assuming 2011 is the base year.
(b) Using the analyses you prepared in part (a), identify any significant changes between 2011 and 2014.
(c) Which do you think would be more useful-percent of the base-year amount or calculating the percentage change between periods-to analyze WestJet between 2011 and 2014? Explain.
TAKING IT FURTHER
WestJet's financial information presented was prepared using IFRS. Prior to 2009, WestJet prepared its financial statements using the version of Canadian GAAP in place before IFRS was required. How would these differing standards affect your interpretation of WestJet's historical performance?

Transcribed Image Text:

WESTJET AIRLINES LTD. Consolidated Statement of Earnings Year Ended December 31 (in millions) 2013 $3,662 3,263 399 27 372 103 S 269 2014 2011 Revenue Operating expenses Profit from operations Other expenses Profit before income taxes Income tax expense Profit $3,976 3,501 475 85 390 106 S 284 2012 $3,427 3,052 375 35 340 98 242 $3,072 2,815 257 49 208 59 S 149 WESTJET AIRLINES LTD. Balance Sheet December 31 (in thousands) Assets Current assets Non-current assets 2014 $1,730 2,916 $4,646 2013 $1,526 2,617 $4,143 2012 $1,635 2,112 $3,747 2011 $1,425 2,049 $3,474 Total assets Current liabilities Non-current liabilities $1,338 1,531 2,869 1,777 $4,646 $1,406 1,147 2,553 1,590 $4,143 $1,188 1,087 2,275 1,472 $3,747 942 1,162 2,104 1,370 $3,474 Total liabilities Shareholders' equity Total liabilities and shareholders' equity