Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statement and balance sheet of Seagate Technology for fiscal 2019. SEAGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019 ($ millions) Revenue $10,390 Cost of revenue 7,458 Product development 991 Marketing and administrative 453 Amortization of intangibles 23 Restructuring and other net (22) Total operating expenses 8,903 Income from operations 1,487 Interest income Interest expense 224 Other, net income 25 Other expense, net 115 Income before income taxes 1,372 (Benefit) provision for income taxes (640) Net income $ 2,012 84 June 28, 2019 ($ millions) Current assets Cash and cash equivalents $2,220 Accounts receivable, net 989 Inventories 970 Other current assets 184 Total current assets 4,363 Property, equipment and leasehold improvements, net 1,869 Goodwill 1,237 Other intangible assets, net 111 Deferred Income taxes 1,114 Other assets, net 191 Total assets $8.885 Current liabilities Accounts payable $1,420 Accrued employee compensation 169 Accrued warranty 91 Accrued expenses 552 Total current abilities 2,232 Long-term accrued warranty 104 Long-term accrued income taxes 4 Other noncurrent liabilities 130 Long-term debt. less current portion 4,253 Total liabilities 6.723 Shareholders equity Ordinary shares par value $0.0001, 26 billion shares authorized, 1.340,697,595 and 1.354,218,154 shares issued and outstanding, respectively 0 Additional paid in capital 6,545 Accumulated other comprehensive loss (34) Accumulated deficit (4.349) Total shareholders' equity 2 162 Total abilities and shareholders equity $8,885 Forecast Seagate Technology 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated. 501 Revenue growth Cost of revenue Product development 9.5 Marketing and administrative 44 Restructuring and other net 50 income tax expense (pretax income) 216 Forecast no change in the following income statement accounts: Amortization of intangibles, interest income, Interest expense, and Othet, net income Round all answers to the nearest whole number Do not use negative signs with any of your answers in the income statement SEAGATE TECHNOLOGY PLC Consolidated Statement of income June 2020 0 0 0 0 0 (5 millions) For Year Ended Revenue Cost of revenue Product development Marketing and administrative Amortization of intables Restructuring and other net Total operating expenses Income from operations interest income interest expence Othernet Other expensernet Income before income taxes Provision for income taxes Net income 0 0 0 5 Forecast Seagate Technology's 2020 balance sheet using the following forecast assuccions, which we are as a percentage of ownerstrewended Accounts recent 3.5 encore Other current et 891 Deferred come taxe 07 Olet Accounts payable 1 Ademlocomotion 10 Accrued warrant 0.0 Audac 5. Lontre acou want 104 Othere is Forecast no change in the following oslonce sheet accounts: Goodwill, Long term acued income taxes long-term detit, les content on Ordinary there and ecumulated other comprehensielos . Assume that in 2020, CAPEX will be 5.0 of revenue and depreciation expense will be 5.45 of property, equipment and sell provements, grous at the start of the year wich was milion Assume that in 2020, the company wards 199 million of stod based compensation with reset Addition des capital by the same amount Assume that the company rely induces this compensation in operating expenses each year The company has didend payout ratio of 35.0 of niet income Round all answers to the nearest whole number. Use a negative sige for late the conveks and cont decit June 2020 ($ millions) Current assets Cash and cash equivalents Accounts receivable, net $ Inventories $ Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total assets Current liabilities Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Total current liabilities Long-term accrued warranty Long-term accrued income taxes Other noncurrent liabilities Long-term debt less current portion Total liabilities Shareholders' equity Ordinary shares- par value 50.0001, 2.6 billion shares authorized 1.340.697.595 and 1.354,218.154 shares issued and outstanding, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total shareholders' equity Total liabilities and shareholders' equity O oooooooooooooooooooo 5 oll $ Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statement and balance sheet of Seagate Technology for fiscal 2019. SEAGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019 ($ millions) Revenue $10,390 Cost of revenue 7,458 Product development 991 Marketing and administrative 453 Amortization of intangibles 23 Restructuring and other net (22) Total operating expenses 8,903 Income from operations 1,487 Interest income Interest expense 224 Other, net income 25 Other expense, net 115 Income before income taxes 1,372 (Benefit) provision for income taxes (640) Net income $ 2,012 84 June 28, 2019 ($ millions) Current assets Cash and cash equivalents $2,220 Accounts receivable, net 989 Inventories 970 Other current assets 184 Total current assets 4,363 Property, equipment and leasehold improvements, net 1,869 Goodwill 1,237 Other intangible assets, net 111 Deferred Income taxes 1,114 Other assets, net 191 Total assets $8.885 Current liabilities Accounts payable $1,420 Accrued employee compensation 169 Accrued warranty 91 Accrued expenses 552 Total current abilities 2,232 Long-term accrued warranty 104 Long-term accrued income taxes 4 Other noncurrent liabilities 130 Long-term debt. less current portion 4,253 Total liabilities 6.723 Shareholders equity Ordinary shares par value $0.0001, 26 billion shares authorized, 1.340,697,595 and 1.354,218,154 shares issued and outstanding, respectively 0 Additional paid in capital 6,545 Accumulated other comprehensive loss (34) Accumulated deficit (4.349) Total shareholders' equity 2 162 Total abilities and shareholders equity $8,885 Forecast Seagate Technology 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated. 501 Revenue growth Cost of revenue Product development 9.5 Marketing and administrative 44 Restructuring and other net 50 income tax expense (pretax income) 216 Forecast no change in the following income statement accounts: Amortization of intangibles, interest income, Interest expense, and Othet, net income Round all answers to the nearest whole number Do not use negative signs with any of your answers in the income statement SEAGATE TECHNOLOGY PLC Consolidated Statement of income June 2020 0 0 0 0 0 (5 millions) For Year Ended Revenue Cost of revenue Product development Marketing and administrative Amortization of intables Restructuring and other net Total operating expenses Income from operations interest income interest expence Othernet Other expensernet Income before income taxes Provision for income taxes Net income 0 0 0 5 Forecast Seagate Technology's 2020 balance sheet using the following forecast assuccions, which we are as a percentage of ownerstrewended Accounts recent 3.5 encore Other current et 891 Deferred come taxe 07 Olet Accounts payable 1 Ademlocomotion 10 Accrued warrant 0.0 Audac 5. Lontre acou want 104 Othere is Forecast no change in the following oslonce sheet accounts: Goodwill, Long term acued income taxes long-term detit, les content on Ordinary there and ecumulated other comprehensielos . Assume that in 2020, CAPEX will be 5.0 of revenue and depreciation expense will be 5.45 of property, equipment and sell provements, grous at the start of the year wich was milion Assume that in 2020, the company wards 199 million of stod based compensation with reset Addition des capital by the same amount Assume that the company rely induces this compensation in operating expenses each year The company has didend payout ratio of 35.0 of niet income Round all answers to the nearest whole number. Use a negative sige for late the conveks and cont decit June 2020 ($ millions) Current assets Cash and cash equivalents Accounts receivable, net $ Inventories $ Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total assets Current liabilities Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Total current liabilities Long-term accrued warranty Long-term accrued income taxes Other noncurrent liabilities Long-term debt less current portion Total liabilities Shareholders' equity Ordinary shares- par value 50.0001, 2.6 billion shares authorized 1.340.697.595 and 1.354,218.154 shares issued and outstanding, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total shareholders' equity Total liabilities and shareholders' equity O oooooooooooooooooooo 5 oll $