(a) What assets and liabilities of unconsolidated affiliates are omitted from Cummins's balance sheet as a result of the equity method of accounting for those investments?

Assets $_____

Liabilities $_______

Analyzing and Interpreting Disclosures on Equity Method Investments Cummins, Inc. (CMI) reports investments in affiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins reports those investments on its balance sheet at $734 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: 498 As of and for the years ended December 31, (in millions) 2010 2009 2008 Net sales $ 7,107 $5,554 $6,610 Gross margin 1,651 1,365 1,509 Net income 668 427 Cummins share of net income $ 321 $ 196 $ 231 Royalty and interest income 30 Total equity, royalty and interest income from investees $ 351 $ 214 $ 253 Current assets $ 2,741 $ 2,005 Noncurrent assets 1,253 1,123 Current liabilities (1,837) (1,406) Noncurrent liabilities (499) (390) Net assets $ 1,658 $1,332 Cummins share of net assets $734 $ 587