Cummins Inc. reports investments in athiliated companies, consisting mainly of investments in nine manufacturing joint ventures. Cummins reports those investments on its balance sheet at $958 million and provides the following financial information on its investee companies in a footnote to its 10-K report. As of and for the years ended December 31 Equity Investee Financial Summary $ millions 2015 ..... . . Net sales..... Gross margin ... Net income....... Cummins' share of net income .. Royalty and interest income Total equity, royalty and interest from investees. 2014 $7,426 1,539 630 $ 330 40 $ 370 $5,946 1,265 521 $ 273 - 42 $ 315 . 2013 $7,799 1,719 690 $ 325 36 $ 361 . . Current assets .. Noncurrent assets ......... Current liabilities. ......... Noncurrent liabilities. ..... Net assets. ........ $2,458 1,539 (1.796) (284) $1,917 $2,476 1,667 (1,875) (420) $1,848 $ 956 Cummins' share of net assets ... $ 958 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. c. How does the equity method impact Cummins' ROE and its RNOA components (net operating asset turnover and net operating profit margin)