17. [Sales of receivables and investment in affiliates; extension of Lucent example] As noted in chapter footnote 16 and Exhibit 11-3, in creating the QSPE to sell its receivables, Lucent trans- ferred $700 million in receivables to the QSPE as collateral for the receivables sold. These receivables are now reported as (part of) Lucent's investment in affiliates (a long-term asset).

a. Explain why this transfer requires analytical adjustment.

b. Redo Exhibit 11-4 for 1999 to adjust for this transfer.