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 84 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 SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet 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 liabilities 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, 2.6 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 liabilities and shareholders' equity $8,885 Forecast Seagate Technologys 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated. Revenue growth 5% Cost of revenue 71.8% Product development 9.5% Marketing and administrative 4.4% Restructuring and other, net $0 Income tax expense (% pretax income) 21% Forecast no change in the following income statement accounts: Amortization of intangibles, Interest income, Interest expense, and Other, net income. Round all answers to the nearest whole number. Do not use negative signs with any of your answers in the income statement. SEAGATE TECHNOLOGY PLC Consolidated Statement of Income ($ millions) For Year Ended June 2020 Revenue Answer Cost of revenue Answer Product development Answer Marketing and administrative Answer Amortization of intangibles Answer Restructuring and other, net Answer Total operating expenses Answer Income from operations Answer Interest income Answer Interest expense Answer Other, net Answer Other expense, net Answer Income before income taxes Answer Provision for income taxes Answer Net income Answer Forecast Seagate Technologys 2020 balance sheet using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated. Accounts receivable, net 9.5% Inventories 9.3% Other current assets 1.8% Deferred income taxes 10.7% Other assets, net 1.8% Accounts payable 13.7% Accrued employee compensation 1.6% Accrued warranty 0.9% Accrued expenses 5.3% Long-term accrued warranty 1.0% Other noncurrent liabilities 1.3% Forecast no change in the following balance sheet accounts: Goodwill, Long-term accrued income taxes, Long-term debt, less current portion, Ordinary shares, and Accumulated other comprehensive loss. Assume that in 2020, CAPEX will be 5.8% of revenue, and depreciation expense will be 5.4% of Property, equipment and leasehold improvements, gross at the start of the year, which was $9,835 million. Assume that in 2020, the company awards $99 million of stock-based compensation which increases Additional paid-in capital by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year. The company has a dividend payout ratio of 35.4% of net income. Round all answers to the nearest whole number. Use a negative sign for your Accumulated other comprehensive loss and Accumulated deficit answers. SEAGATE TECHNOLOGY PLC Forecasted Balance Sheet ($ millions) June 2020 Current assets Cash and cash equivalents Answer Accounts receivable, net Answer Inventories Answer Other current assets Answer Total current assets Answer Property, equipment and leasehold improvements, net Answer Goodwill Answer Other intangible assets, net Answer Deferred income taxes Answer Other assets, net Answer Total assets Answer Current liabilities Accounts payable Answer Accrued employee compensation Answer Accrued warranty Answer Accrued expenses Answer Total current liabilities Answer Long-term accrued warranty Answer Long-term accrued income taxes . Answer Other noncurrent liabilities Answer Long-term debt, less current portion Answer Total liabilities Answer Shareholders equity Ordinary shares par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively Answer Additional paid-in capital Answer Accumulated other comprehensive loss Answer Accumulated deficit Answer Total shareholders' equity Answer Total liabilities and shareholders' equity Answer