Question 1Westjet Airlines Ltd. filed its 2016 Audited Annual Financial Statements – English with SEDAR on February 7, 2017. Access these financial statements at SEDAR.com, and answer the following questions:What GAAP does Westjet apply? In Note 1 to the financial statements, Westjet describes its accounting policies for leases, and in Note 2 Westjet indicates that a new accounting standard has been approved for leases. What specific lease accounting standard was applied for the company’s 2016 financial statements? Are most of Westjet’s existing leases operating leases or capital leases? How did you reach your conclusion?Calculate the company’s debt-to-equity ratio at December 31, 2016. Read the information about Leases in Note 16 to the financial statements. Assuming an 8% discount rate and payments at the beginning of each of the periods given, estimate the amount of capitalized Obligations under Leases if these contracts were required to be accounted for similar to capital leases. Provide your calculations.Re-calculate what the company’s debt-to-equity ratio would have been if the lease contracts referred to in part d) had to be capitalized at December 31, 2016. Comment on what difference these recalculations would make to your assessment of the company’s financial position. The question 2 and 3 are in the word file. Please download it and see all of them before you decide to choose this question.