Refer to Canadian Tire's financial statements in Appendix A at the end of the book. Suppose Canadian Tire's bank statement has just arrived at company headquarters. Further assume the bank statement shows Canadian Tire's cash balance at $664.2 million and also assume that cash and cash equivalents has a balance of $658.2 million on the books.

1. You must determine how much to report for cash and cash equivalents on the January 3, 2015 balance sheet. Suppose you uncover these reconciling items (all amounts in millions):

a. Interest earned on bank balance, $2.2

b. Outstanding cheques, $6.4

c. Bank collections of various items, $4

d. Deposits in transit, $4.3

e. Transposition error-Canadian Tire overstated cash by $1.3

f. Bank charges of $1

Prepare a bank reconciliation to show how Canadian Tire arrived at the correct amount of cash and cash equivalents to report on its January 3, 2015, balance sheet. Journal entries are not required.

2. How much were Canadian Tire's receivables at January 3, 2015, and December 28, 2013?

What can you assume from this information?

3. Assume that Canadian Tire wrote off $125 million as uncollectible. How much did Canadian Tire collect from customers during 2014?