Access the Annual Report of WestJet Airlines Corporation for its year ended December 31, 2017 either on the company's website or the SEDAR website (www.sedar.com). Refer to the financial statements, accompanying notes and Management Discussion & Analysis to answer the following questions. For each answer, provide the appropriate source - specific note number, page reference in management discussion or other source as applicable:

1) WestJet reports accounts payable and accrued liabilities of $549,844 thousand.

What is the composition of this balance? Which item has experienced the biggest percentage change from the prior year?

2) WestJet reports a provision.

a. How does WestJet determine when provisions are required?

b. What is the amount, and classifications, of WestJet's provisions?

c. What is WestJet's provision for?

d. How does the company account for the provision? 

e. Explain in your own words what "unwinding of the present value discount..." means.

f. Explain what the adjustments are that are made to the provision each year?

3) WestJet reports $374,946 of deferred income tax on the Statement of Financial Position.

a. Explain in your own words what a deferred income tax liability is.

b. Under what circumstances may deferred tax assets be netted against deferred tax liabilities?

c. List the components and respective balances that make up the net deferred tax liability in 2017?

4) WestJet reports non-refundable guest credits of $43,288 in 2017. Describe what specifically is included and excluded in the determination of this balance.

5) WestJet reports a number of commitments. Describe these items and the value reported for each item. 

6) WestJet does not provide a pension program for its employees but it does have a number of plans in place to provide employees with additional compensation. Reviewing both the financial statements and their notes as well as the MD&A accompanying the Audited Statements, describe these plans in your own words and indicate the expense recognized for each plan in 2017. Do not include any compensation arrangements with members of the Board of Directors.

7) The company presents its financial statements according to IFRS. Prepare a schedule comparing reporting under IFRS and reporting under ASPE that refers specifically to the WestJet financial statements, for liability and equity accounts. (Hint: answer the question "what would be different if ASPE was used?").

8) WestJet has a variety of share classes.

a. Identify the three classes of shares and explain the one essential difference between the two classes of common voting shares.

b. How many shares have been repurchased in 2017 and how many shares was WestJet authorized to repurchase during 2017?

c. How is WestJet accounting for the repurchase of the shares?

d. Prepare a summary of the number of stock options granted, exercised, forfeited and expired during 2016. Explain how stock options are accounted for in the company for options granted and exercised.

9) Financial statement analysis is used extensively in practice to interpret financial statement and other financial information. Using the WestJet audited financial statements and the Chapter 22 Financial Statement Analysis section, answer the questions. Your answers should be presented in a clear and organized fashion. When asked to prepare or compare quantitative information, use a spreadsheet or table.

a. Below is a list of industry averages for a number of ratios, calculate the same ratios for WestJet for 2017 and 2016. Where averages are required, access the WestJet financial statements for the year ended December 31, 2016 for the 2015 comparative figures. Prepare a table similar to the one below. Note: Include all formulas used in an appendix to your report. 

b. Comment on your analysis from part a. Include in your answer any trends occurring in WestJet for 2017 and 2016, as well as how the company compares to the industry average.

c. Prepare a vertical analysis of the WestJet Consolidated Statement of Earnings for the 2017 and 2016 year ends.

d. After completing the analysis in part (c); comment on the results, specifically addressing significant changes that are apparent and possible explanations for these changes. 

e. Prepare a horizontal analysis of the WestJet Consolidated Statement of Financial Position for the 2017 and 2016 year ends using 2015 as the base year. 

f. Comment on your analysis from part (e). Include in your answer any trends occurring and any other relationships or information determined by your analysis.