Target

does not have investments in stock or bonds. However,

CVS

Health

Corp.

, which purchased Targets

pharmacy and clinical business during 2015, does have some investments.

Access CVSs 2015 10K (issued on

February 9, 2016) at

investors.cvshealth.com

to answer the following questions:

C1.

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

CVSs balance sheet, what was the balance in CVSs short

-term investments as of December

31, 2015 and December 31, 2014?

______________________________________________________________________________

c.

Per CVSs statement of cash flows, what cash transactions affected short

-term investments

during 2015?

_______________________________________________________________________________

d.

Prepare a T

-account that summarizes transactions affecting CVSs short

-

term investments during

2015. Speculate as to the explanation for any plug figure necessary to ma

ke the T

-account

balance.

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________

C2.

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 en

ded December 31,

2015. Assuming that the Heartland investment is material:

a.

How would Heartlands earnings affect CVSs income statement?

_______________________________________________________________________________

b.

How would Heartlands earnings affect CVSs balance sheet?

_______________________________________________________________________________