Reference no: EM132943340

Below is the stockholders' equity section of the December 31, 2018, Caterpillar Inc. balance sheet.

Stockholders' Equity ($ Millions)2018

Common stock of $1.00 par;

Authorized shares: 2,000,000,000.

Issued 814,894,624 shares at paid-in amount$ 5,827

Treasury stock 239,351,886 shares, at cost$ (20,351)

Profit employed in the business$ 30,427

Accumulated other comprehensive income (loss)$ (1,684)

Noncontrolling interests$ 41Total stockholders' equity$ 14,080

Problem 1: How many shares of Caterpillar common stock are outstanding at year-end 2018?

Required 2: What does the phrase "at paid-in amount" in the common stock account mean?

Problem 3: At what average cost has Caterpillar repurchased its stock as of year-end 2018?

Problem 4: Why would a company such as Caterpillar want to repurchase its common stock?

Problem 5: What is meant by "Profit employed in the business"? The account balance was $26,301 million at the start of the year, and the company reported net income of $6,147 million for the year. What amount did the company record as dividends in 2018?