Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $958 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: Net sales Gross margin Net income Equity Investee Financial Summary $ millions Cummins' share of net income Royalty and interest income Total equity, royalty and interest income from investees Current assets Noncurrent assets Current liabilities Noncurrent liabilities Net assets Cummins' share of net assets As of and for the years ended December 31 2014 $7,426 1,539 630 $330 40 $370 2015 $5,946 1,265 521 $273 42 $315 $2,458 1,539 (1,796) (284) $1,917 $958 $2,476 1,667 (1,875) (420) $1,848 $956 2013 $7,799 1,719 690 $325 36 $361 (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 = $ x million

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 $958 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: Net sales Gross margin Net income Equity Investee Financial Summary $ millions Cummins' share of net income Royalty and interest income Total equity, royalty and interest income from investees Current assets Noncurrent assets Current liabilities Noncurrent liabilities Net assets Cummins' share of net assets As of and for the years ended December 31 2014 $7,426 1,539 630 $330 40 $370 2015 $5,946 1,265 521 $273 42 $315 $2,458 1,539 (1,796) (284) $1,917 $958 $2,476 1,667 (1,875) (420) $1,848 $956 2013 $7,799 1,719 690 $325 36 $361 (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 = $ x million

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Munabhai

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 $958 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: Net sales Gross margin Net income Equity Investee Financial Summary $ millions Cummins' share of net income Royalty and interest income Total equity, royalty and interest income from investees Current assets Noncurrent assets Current liabilities Noncurrent liabilities Net assets Cummins' share of net assets As of and for the years ended December 31 2014 $7,426 1,539 630 $330 40 $370 2015 $5,946 1,265 521 $273 42 $315 $2,458 1,539 (1,796) (284) $1,917 $958 $2,476 1,667 (1,875) (420) $1,848 $956 2013 $7,799 1,719 690 $325 36 $361 (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 = $ x million
Transcribed Image Text: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 $958 million, and provides the following financial information of its investee companies in a footnote to its 10-K report: Net sales Gross margin Net income Equity Investee Financial Summary $ millions Cummins' share of net income Royalty and interest income Total equity, royalty and interest income from investees Current assets Noncurrent assets Current liabilities Noncurrent liabilities Net assets Cummins' share of net assets As of and for the years ended December 31 2014 $7,426 1,539 630 $330 40 $370 2015 $5,946 1,265 521 $273 42 $315 $2,458 1,539 (1,796) (284) $1,917 $958 $2,476 1,667 (1,875) (420) $1,848 $956 2013 $7,799 1,719 690 $325 36 $361 (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 = $ x million
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

SEE SOLUTION
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS