Following are fiscal year financial statements of Cisco Systems, Inc.

Required

Forecast Cisco's fiscal 2014 income statement, balance sheet, and statement of cash flows; round forecasts to \(\$\) millions.. Cisco's long-term debt footnote reports that current maturities of longterm debt are \(\$ 3,260\) million for fiscal year 2014 and \(\$ 507\) million for fiscal year 2015; Cisco includes the current maturities with "Short-term debt" on its balance sheet. Cisco reports capital expenditures of \(\$ 1,160\) million, dividends of \(\$ 3,310\) million, depreciation of \(\$ 1,178\) million, which it includes in G\&A expense, and amortization of \(\$ 395\) million, which it reports separately. Identify all financial statement relations estimated and assumptions made; estimate forecasted income statement relations to 3 decimal places, for example, General and administrative/Total revenue is \(4.7 \%\). Assume no change for interest income and expense, goodwill, other long-term assets, amortization of purchased intangible assets, nonoperating income, common stock, accumulated other comprehensive income, and noncontrolling interests. What do the forecasts imply about the financing needs of Cisco?

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Fiscal Years ended (in millions) Revenue Product..... Service Total revenue. Cost of sales Product... Service. Consolidated Statements of Operations Total cost of sales Gross margin Operating expenses Research and development Sales and marketing... General and administrative. Amortization of purchased intangible assets Restructuring and other charges Total operating expenses Operating income... Interest income. Interest expense. Other income (loss), net Interest and other income, net Income before provision for income taxes. Provision for income taxes... Net income... July 27, 2013 July 28, 2012 $38,029 10,578 48,607 15,541 3,626 19,167 29,440 5,942 9,538 2,264 395 105 18,244 11,196 654 (583) (40) 31 11,227 1,244 $9,983 $36,326 9,735 46,061 14,505 3,347 17,852 28,209 5,488 9,647 2,322 383 304 18,144 10,065 650 (596) 40 94 10,159 2,118 $8,041