21 ex

Question 21 Not yet answered Marked out of 3.13 P Fla Refine Assumptions for PPE Forecast Provided below is FY2016 information for Medtronic PLC Medtronic plc Consolidated Statement of Income ($ millions) Apr. 29, 2016 Net sales $29,277 Costs and expenses Cost of products sold 9,142 Research and development expenses 2,224 Selling, general, and administrative expense 9,469 Special charges (gains), net 70 Restructuring charge, net 290 Certain litigation charges, net 26 Acquisition-related items 283 Amortization of intangiable assets 1,931 Other expense, net 107 Operating profit 5,735 Interest expense, net 955 Income from operations before income taxes 4,780 Provision for income taxes 908 $3,872 Net income Medtronic plc Consolidated Balance Sheets ($ millions) Current assets Cash and cash equivalents Investments Accounts receivable Inventories Tax assets Prepaid expenses and other current assets Total current assets Property, plant, and equipment, net Goodwill Other intangible assets, net Long-term tax assets Other assets Total assets Current liabilities Short-term borrowings Accounts payable Accrued compensation Accrued income taxes Deferred tax liabilities Other accrued expenses Total current liabilities Long-term debt Long-term accrued compensation Long-term accrued income taxes Long-term deferred tax liabilities Apr. 29, 2016 Apr. 24, 2015 $2,975 $4,942 9,758 14,637 5,562 5,112 3,473 3,463 697 1,335 1,234 1,454 23,699 30,943 4,940 4,798 41,500 40,530 26,899 28,101 1,383 774 1,559 1,737 $99,980 $106,883 $1,092 $2,533 1,709 1,610 1,712 1,611 566 935 119 2,185 2,464 7,264 9,272 30,247 33,752 1,759 1,535 2,903 2,476 3,729 4,700 Long-term deferred tax liabilities 3,729 4,700 Other long-term liabilities 1,916 1,819 Total liabilities 47,818 53,554 Shareholders' equity Ordinary shares Retained earnings 54,030 54,513 Accumulated other comprehensive (loss) (1,868) (1,184) Total shareholders' equity 52,162 53,329 Total liabilities and shareholders' equity $99,980 $106,883 a. Use the financial statements along with the additional information below to forecast property, plant and equipment, net for FY2017 CAPEX in FY2016 $1,079 million 923 million Depreciation expense in FY2016 Forecasted FY2017 net sales Property, plant, and equipment, gross FY2015 Property, plant, and equipment, gross FY2016 35,620 million 8,863 million 9,714 million Round to the nearest million. million Forecasted PPE, net for FY2017 S Hound to the nearest million. Forecasted PPE, net for FY2017 $ million b. Suppose the company discloses in a press release that accompanies its year-end SEC filing that anticipated CAPEX for FY2017 is $1.5 billion, Use the guidance to refine your forecast of property. plant and equipment, net for FY2017. million