During the fiscal year ended January 3, 2015 (its 2014 fiscal year), Canadian Tire had numerous accruals and deferrals. As a new member of Canadian Tire's accounting and financial staff, it is your job to explain the effects of accruals and deferrals on Canadian Tire's net income for this year. The accrual and deferral data follow, along with questions that Canadian Tire's shareholders have raised (all amounts in millions):
1. Beginning Trade and other receivables for 2014 were $758.5. Ending receivables for 2014 are $880.2. Which of these amounts did Canadian Tire earn in 2013? Which amount did Canadian Tire earn in 2014? Which amount is included in Canadian Tire's revenue for 2014?
2. Accumulated depreciation on property, plant, and equipment stood at $2,326.5 at December 28, 2013, and at $2,529.4 as at January 3, 2015. Accumulated depreciation was reduced by $72.8 for assets sold and various other reasons during the year. Calculate the depreciation expense for the year, and compare to the depreciation expense reported in Note 16 of the 2014 financial statements in Appendix A.