Part I: Required Answer the following questions by referring to the December 31, 2011, and June 25,

Question:

Part I:

Required

Answer the following questions by referring to the December 31, 2011, and June 25, 2011, respective balance sheets for each of WestJet and Danier Leather in Appendix II.

a. WestJet shows Advance ticket sales of $432,186 (thousand) under current liabilities. Explain what this is.

b. WestJet shows Current portion of long-term debt of $158,832 (thousand) under current liabilities. Explain what this is and why it is classified as a current liability. Why is some of the debt listed as a current liability and the balance as long-term debt?

c. Danier’s accounts payable and accrued liabilities at June 25, 2011, is $12,217,000. What percentage is this of total liabilities on the same date?

Part 2:

Required

Answer the following questions by referring to the December 31, 2011, balance sheets for each of Shoppers Drug Mart and High Liner Foods in Appendix II.

a. Shoppers Drug Mart shows a December 31, 2011, balance of $249,971,000 as the current portion of long-term debt. Calculate the total long-term debt.

b. Calculate what percentage of High Liner’s assets at December 31, 2011, was financed by current liabilities.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...