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?

b. Do the liabilities of the unconsolidated affiliates affect Cummins directly? Explain.

For part a) I have solved it but I am a little confused. Please clarify .

Assets = Current Assets + Non - Current Assets = 2458 + 1539 = 3997. Out of this, 958 million $ of assets are Cummin's share of net assets that are included which means , $3997 - $958 = $ 3039 millions of assets are excluded. Is this correct or is the question asking for the total amount of assets which is missing from the balance sheet? Assets = (Current assets $2,458 million + Noncurrent assets $1539 million) = $3,997 million Liabilities = (Current liabilities $1,796 million + Noncurrent liabilities $284 million) = $2,080 million

Equity Investee Financial Summary $ millions As of and for the years ended December 31 2015 2014 2013 $5,946 1,265 521 $ 273 - 42 $ 315 .. $7,426 1,539 630 $ 330 40 $ 370 $7,799 1,719 690 $ 325 36 361 Net sales...... Gross margin ... Net income............. Cummins' share of net income ...... Royalty and interest income. Total equity, royalty and interest from investees. Current assets .. Noncurrent assets .... Current liabilities. .... Noncurrent liabilities........ Net assets.......... Cummins' share of net assets $2,458 1,539 (1.796) (284) $1,917 $2,476 1,667 (1,875) (420) $1,848 $ 958 $ 956