target corporation prepares its financial statements according to U$.$S$.$ GAAP. Target's financial statements and disclosure notes for the year ended January $30,2016,$ are available Connect. This material also is available under the Investor Relations link at the company's website $($

www$.$target.com$).$ Target does not have investments in stock or bonds. However, CVS Health Corp., which purchased Target's pharmacy and clinical business during $2015,$ does have some investments. Access CVS$\text{'}$s $201510$K $($issued on February $9,2016)$ at investors.cvshealth. com to answer the following questions,

Required:

CVS indicates in Note $1$ that it has some short$-$term investments that consist of certificates of deposit $($CDs$).$

a$.$ How has CVS classified those CDs for accounting purposes?

b$.$ Per CVS$\text{'}$s balance sheet, what was the balance in CVS$\text{'}$s short$-$term investments as of December $31,2015$ and December $31,2014?$

c$.$ Per CVS$\text{'}$s statement of cash flows, what cash transactions affected short$-$term investments during $2015?$

d$.$ Prepare a T$-$account that summarizes transactions affecting CVS$\text{'}$s short$-$term investments during $2015.$ Speculate as to the explanation for any "plug" figure necessary to make the T$-$account balance.

$2.$ Per Note $1,$ CVS has equity$-$method investments in SureScripts, LLC and in Heartland Healthcare Services. CVS indicates that those investments are immaterial for the year ended December $31,2015.$ Assuming that the Heartland investment is material,

a$.$ How would Heartland's earnings affect CVS$\text{'}$s income statement?

b$.$ How would Heartland's earnings affect CVS$\text{'}$s balance sheet?