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 C.

Required:
a. Assuming that all the sales were on account, determine the amount of cash that was collected from customers in 2013.
b. Why do you think WestJet does not report a Cost of Goods Sold account on its statement of income?
c. Explain what the item advance ticket sales in the current liabilities section of the statement of financial position represents. What type of transaction gave rise to this liability? What will cause this liability to decrease?
d. How much money did WestJet use in 2013 to repurchase shares? Assuming the shares were all repurchased using cash, what was the effect on the accounting equation of the share repurchase?
e. How much did WestJet spend on acquiring new aircraft in 2013? If it financed the acquisitions with long-term debt, what was the effect on the accounting equation?

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EXHIBIT 2-19AWE 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 Other 3,337,569 3,133,492 293,917 3,662,197 3,427,409 324,628 Operating expenses Aircraft fuel Airport operations Flight operations and navigational charges Sales and distribution Marketing, general and administration Depreciation and amortization Inflight Aircraft leasing Maintenance Employee profit share 1,039,448 459,465 410,052 356,988 222,567 200,840 176,907 175,646 169,197 51,577 3,262,687 992,787 424,911 376,050 333,106 202,398 185,401 162,633 173,412 154,406 46,585 3,051,689 375,720 Earnings from operations 399,510 Non-operating income (expense): Finance income Finance cost Gain on foreign exchange Gain (loss) on disposal of property and equipment Loss on fuel derivatives 17,848 (43,447) 1,136 (2,962) 18,391 (48,900) 1,061 469 (27,425) 372,085 51 (35,491) 340,229 Earnings before income tax Income tax expense (recovery): 66,230 31,607 97,837 242,392 Current Deferred 154,964 (51,601) 103,363 268,722 Net earnings EXHUBIT 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 Restricted cash Accounts receivable Prepaid expenses, deposits and other 1,256,005 58,106 42,164 133,263 36,722 1,526,260 1,408,199 51,623 37,576 101,802 35,595 1,634,795 19 19 19 Note 2013 2012 Non-current assets: Property and equipment Intangible assets Other assets 2,487,734 58,691 70,778 4,143,463 1,985,599 50,808 75,413 3,746,615 19 Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities Advance ticket sales Non-refundable guest credits Current portion of maintenance provisions Current portion of long-term debt10 19 19 19 543,167 551,022 46,975 76,105 189,191 1,406,460 460,003 480,947 47,859 34,135 164,909 1,187,853 Non-current liabilities: Maintenance provisions Long-term debt Other liabilities Deferred income tax 142,411 689,204 8,834 306,714 2,553,623 145,656 574,139 9,914 356.748 2,274,310 10 19 Total liabilities Shareholders' equity Share capital Equity reserves Hedge reserves Retained earnings 12 603,861 69,079 105 916,795 1589,840 614,899 69.856 (5,746) 793,296 1,472,305 Total shareholders' equity Total liabilities and shareholders' equi 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 ltems not involving cash: 268,722 242,392 Depreciation and amortization Change in maintenance provisions Change in other liabilities Amortization of hedge settlements Loss on fuel derivatives (Gain) loss on disposal of property and equipment Share-based payment expense Deferred income tax expense (recovery) Unrealized foreign exchange gain 200,840 26,610 1,782 1,400 2,962 14,533 (51,601) (12,020) 298,697 (6,484) (1.374) 19,079 (147,868) (7,131) 608,147 185,401 31,378 (383) 1,400 6,512 (469) 12,815 31,607 (1,487) 208,110 (3,282) (6,894) 17,780 (950 1.306) 722,624 12 Change in non-cash working capital Change in restricted cash Change in other assets Cash interest received Cash taxes paid Purchase of shares pursuant to compensation plans Note 2013 2012 Investing activities: Aircraft additions Other (639,592) (218,116) (75,580)(51,191) (269,307 and equipment and i ible additions (715,172) Financing activities: Increase in long-term debt Repayment of long-term debt Decrease in obligations under finance leases Shares repurchased Dividends paid Issuance of shares pursuant to compensation plans Cash interest paid Change in non-cash working capital 318,075 (178,647) 72,995 (162,678) (75) (112,065) (37,549) 198 (43,055) 6,815) (289,044) 12 (112,362 (62,188) 106 (36,677) 146 (61,547) Cash flow from operating, investing and financing activities (168,572) 16,378 164,273 321 164,594 Effect of foreign exchange on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year (152,194) 1,408,199 1,256,005 1,243,605 1,408,199