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647 499 Analyzing and Interpreting Disclosures on Equity Method Investments Cummins Inc. reports investments in...

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647 499 Analyzing and Interpreting Disclosures on Equity Method Investments Cummins Inc. reports investments in affiliated companies, consisting mainly of investments in six manufacturing joint ventures. Cummins provides the following financial information on its investee companies in a footnote to its 10-K report. For years ended December 31 Equity Investee Financial Summary, $ millions 2018 2017 2016 Net sales $7,352 $7,050 $5,654 Gross margin 1,373 1,422 1,182 Net income 680 Cummins' share of net income $336 $308 $260 Royalty and interest income 58 49 41 Total equity, royalty and interest income from investees $394 $357 $301 Current assets $3,401 $3,416 Noncurrent assets 1,449 1,379 Current liabilities (2,669) (2,567) Noncurrent liabilities (218) (237) Net assets $1,963 $1,991 Cummins' share of net assets $1,144 $1,116 (a) What assets and liabilities of unconsolidated affiliates are omitted from Cummins' balance sheet as a result of the equity method of accounting for those investments? Assets = $ 0 x million Liabilities = $ 0 x million

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