Answered step by step
Verified Expert Solution
Question
1 Approved Answer
35. Cummins, Inc., a manufacturer of large engines and electric power generation systems, among other products, reports the following Equity Investments in the footnotes to
35. Cummins, Inc., a manufacturer of large engines and electric power generation systems, among other products, reports the following Equity Investments in the footnotes to the December 31, 2014 annual report:
Komatsu alliances | 20%-50% | $160 |
Dongfeng Cummins Engine Company, Ltd | 50% | 136 |
Beijing Foton Cummins Engine Company, Ltd | 50% | 117 |
Chongqing Cummins Engine Company, Ltd | 50% | 92 |
Cummins-Scania XPI Manufacturing, LLC | 50% | 85 |
Tata Cummins, Ltd | 50% | 57 |
North American distributors | 49%-50% | 41 |
Other | Various | 293 |
Total | $981 |
In addition, Cummins provides the following information about these Equity Investments:
Net Sales | $7,426 |
Gross Margin | 1,539 |
Net Earnings | 630 |
Cummins Share of Net Earnings | $330 |
Current Assets | $2,476 |
Noncurrent Assets | 1,667 |
Current Liabilities | (1,875) |
Noncurrent Liabilities | (420) |
Net Assets | $1,848 |
Approximately what percentage of these investee companies did Cummins own, on average, during 2014?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started