1. Caterpillar Inc. consists of two business units: the manufacturing company (parent corporation) and a wholly owned finance subsidiary. These two units are consolidated in Caterpillars 10-K report.

Assume the following is a supplemental disclosure that Caterpillar includes in its 10-K report that shows the separate balance sheets of the parent and its subsidiary, as well as consolidating adjustments and the consolidated balance sheet presented to shareholders. This supplemental disclosure is not mandated under GAAP, but is voluntarily reported by Caterpillar as useful information for investors and creditors.

Using this disclosure, what is the balance of Investments in Financial Products Subsidiaries as of December 31, 2016, on the parents balance sheet?

a. $3,253 million b. $526 million c. $565 million d. $39 million

2. Assume DuPonts 2016 10-K report includes information relating to the companys equity method investments ($ millions). The following footnote reports summary balance sheets for affiliated companies for which DuPont uses the equity method of accounting. The information below is shown on a 100 percent basis followed by the carrying value of DuPonts investment in these affiliates. What is the total stockholders equity of the affiliates at the end of 2016? a. $1,475 b. $844 c. $631 d. $3,072

3. Assume the following is a portion of the investments footnote from MetLifes 2016 10-K report. Investment earnings are a crucial component of the financial performance of insurance companies such as MetLife, and investments comprise a large part of Metlifes assets. MetLife accounts for its bond investments as available-for-sale securities.

At what amount does MetLife report its bond investments on its balance sheets for 2016 and what are the net unrealized gains (losses) for 2016? a. $223,926 million, $8,329 million gain b. $230,050 million, $6,124 million gain c. $223,926 million, $6,124 million gain d. $230,050 million, $2,205 million loss

Supplemental Consolidating Data Machinery Financial Consolidating Consolidated and Engines Products Adjustments $ 1,108 $ 951 $ 157 $ 7,526 2,833 419 4,274 6,442 11,058 (4,616) 344 276 68 2,146 2,139 26 (19) 5,224 5,224 22,790 11,423 11,728 (361) 7,988 5,067 2,921 1,037 301 36 700 10,301 11,036 (735) 565 526 39 3,253 (3,253) 768 1,057 32 (321) 424 418 6 1,451 1,451 1,745 491 1.254 $47.069 $23.987 $27.052 $(3.970) December 31, 2016 (Millions of Dollars) Cash and short-term investments Receivables-trade and other Receivables-finance Deferred and refundable income taxes Prepaid expenses Inventories Total current assets Property, plant and equipment-net Long-term receivables-trade and other Long-term receivables-finance Investments in unconsolidated affiliated companies Investments in Financial Products subsidiaries Deferred income taxes Intangible assets Goodwill Other assets Total assets Liabilities Short-term borrowings Accounts payable Accrued expenses Accrued wages, salaries and employee benefits Customer Advances Dividends payable Deferred and current income taxes payable Long-term debt due within one year Total current liabilities Long-term debt due after one year Liability for postemployment benefits Deferred income taxes and other liabilities Total liabilities. Stockholders' equity Common stock Treasury stock Profit employed in the business Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity $ 4,897 261 1,038 19 $ (199) (137) (26) $ 5,569 3,471 2,617 1,845 395 168 528 4,499 19,092 15,677 2,991 877 38,637 $ 871 3,347 1,605 1,826 395 168 448 340 9,000 2,752 2,991 812 15,555 (4) 84 4.159 10,458 12,960 (366) 35 381 23,799 (316) (717) 875 (875) 1,859 (4,637) 11,808 (598) 8.432 $47.069 1,859 (4,637) 11,808 (598) 8,432 $23.987 2,197 181 3.253 $27,052 (2,197) (181) (3,253) $(3.970) Financial Position at December 31 (in millions) Current assets Noncurrent assets Total assets Short-term borrowings.. Other current liabilities Long-term borrowings Other long-term liabilities. Total liabilities DuPont's investments in affiliates (includes advances of $55 and $84, respectively). 2016 $1,292 1,780 $3,072 $606 621 259 111 $1,597 2015 $1,972 2.811 $4,783 $734 932 716 05 $2,687 $ 844 $1.034 Gross Unrealized December 31, 2016 (in millions) U.S. corporate securities Residential mortgaged-backed securities Foreign corporate securities U.S. treasury/agency securities Commercial mortgaged-backed securities Asset-backed securities Foreign government securities State and political subdivision securities Other fixed maturity securities Total bonds Redeemed preferred stocks Total fixed maturities Cost or Amortized Cost $ 72,339 47,365 33,578 25,643 17,682 11,533 10,080 4,601 912 223,733 193 $223,926 Gain $2,814 353 1,842 1,401 223 91 1,401 185 17 8,327 Loss $ 835 472 439 86 207 51 35 36 41 2,202 3 $2,205 Estimated Fair Value $ 74,318 47,246 34,981 26,958 17,698 11,573 11,446 4,750 888 229,858 192 $230,050 $8,329