Question

Caterpillar Inc. 2017 2016 5 S 51,822 2,900 54,722 42,676 2,786 45,462 35,773 2,764 38,537 STATEMENT 1 Consolidated Results of Operations for the Years Ended December 31 Dollar is willions cat pershare dal Sales and revenues Sales of Machinery, Energy & Transportation Revenues of Financial Products Total sales and revenues Operating costs Cost of goods sold Selling, general and administrative expenses Research and development expenses Interest expense of Financial Products Goodwill impairment charge Other operating incomel expenses Total operating costs Operating profit Interest expense excluding Financial Products Other income expense) Consolidated profit before taxes Provision benefit for income taxes Profit loss of consolidated companies Equity in profit loss) of unconsolidated affiliated companies Profit (loss) of consolidated and affiliated companies Loss: Profit loss) attributable to noncontrolling interests Profit (loss) 36,997 5,478 1,850 722 31,260 4,999 1,842 646 28,044 4,383 1,853 596 595 1,382 1,904 2.255 41,002 37.375 8.293 4.460 1,162 531 153 505 ( 518) 7.822 4.082 3.339 743 6,148 759 754 (67) (0.11) 1.275 1.26 $ (0.11) Profit (los) per common share 10.395 Profit (los) per common share-diluted 10.26 $ Weighted average common shares outstanding (millions) - Basic 591.4 - Diluted 599.4 1 Profit loss attributable to common shareholders. 2 Diluted by assumed exercise of stock based compersation awards, using the treasury sed method 2016, the sum of stock band compensation award was not considered because the impact would be antide See accompanying notes to Consolidated Financial Statements 591.8 599.3 584.3 584.3

Answer 1

Question 5

Answer - b -$1,391 million.

Question 6

Answer – False

Caterpillar has accrued $404 million interest expense excluding Financials product in 2018. It is not paid.

This can be seen from the statement of profit and loss

Question 7

Answer – True

As per the Cash flow statement, Cash flow from financing activities, Caterpillar has received cash from the issue of debt.

Machinery, energy, and transportation – $57 million

Finance products – 8850 million

Question 8

Answer – True

As per the Cash flow statement, Cash flow from financing activities, Caterpillar has repaid debt of $7,822 million

Question 9

Current ratio

Current assets/current liabilitie

Description	Year 2018	Year 2017
Current asstes	$ 38603 million	$36244 million
Current liabilities	$28218 million	$26931 million
Current ratio	1.37	1.35
	(38603/28218)	(36244/26931)

Answer – True

The current ratio of 2018 is 1.37 compared to 1.35 in 2017. Hence it is more liquid in 2018

Question 10

Description	Year 2018	Year 2017
Current liabilities	$28218 million	$26931 million
Total liabilities	$64429 million	$63196 million
Current ratio	0.44	0.43
	(28218/64429)	(26931/63196)

Answer – Increased

The ratio of current liabilities to total liabilities has increased to 0.44 in 2018 from 0.43 in 2017.