Shown below are extracts from the balance sheets of two airlines. WestJet Airlines Ltd. is a Canadian corporation and reported its results using a traditional format. British Airways is a British airline that reported its results under a reverse order of liquidity. Review each balance sheet and describe at least three differences in the way the balance-sheet information is presented.

Transcribed Image Text:

WestJet Airlines Ltd. (thousands of Canadian dollars) Assets Current assets Cash $1,187,899 Accounts receivable 17,518 1,396 Future income tax Prepaid expenses Inventory 41,716 20,181 Total current assets $1,268,710 Property and equipment Intangible assets 2,226,685 13,018 Other assets 54,431 Total assets $3,562,844 Liabilities and shareholders' equity Current liabilities Accounts payable $ 303,583 Advance ticket sales 308,022 Non-refundable guest credits Current portion of long-term debt Current portion of obligations under capital lease 36,778 183,681 108 Total current liabilities 832,172 Long-term debt Obligations under capital leases 863,496 3,249 18,838 Other liabilities Future income tax 337,410 Total liabilities 2,055,16 Shareholders' equity Share capital Contributed surplus Accumulated other comprehensive loss 647,637 62,534 (10,470) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 807,978 1,507,679 $3,562,844