Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are the income statement and balance sheet for Medtronic PLC. Medtronic PLC Consolidated Statement of Income For Fiscal Year Ended $ millions April 26,

Following are the income statement and balance sheet for Medtronic PLC.

Medtronic PLC
Consolidated Statement of Income For Fiscal Year Ended
$ millions April 26, 2019
Net sales $36,668
Costs and expenses
Cost of products sold 10,986
Research and development expense 2,796
Selling, general, and administrative expense 12,502
Amortization of intangible assets 2,117
Restructuring charges, net 238
Certain litigation charges, net 199
Other operating expense, net 310
Operating profit 7,520
Other nonoperating income, net (448)
Interest expense 1,733
Income before income taxes 6,235
Income tax provision 656
Net income 5,579
Net income loss attributable to noncontrolling interests (23)
Net income attributable to Medtronic $5,556

Medtronic PLC
Consolidated Balance Sheet
$ millions April 26, 2019
Current assets
Cash and cash equivalents $5,272
Investments 6,546
Accounts receivable, net 7,466
Inventories, net 4,504
Other current assets 2,573
Total current assets 26,361
Property, plant, and equipment, net 5,610
Goodwill 47,951
Other intangible assets, net 24,672
Tax assets 1,823
Other assets 1,217
Total assets $107,634
Current liabilities
Current debt obligations $1,006
Accounts payable 2,344
Accrued compensation 2,627
Accrued income taxes 680
Other accrued expenses 3,510
Total current liabilities 10,167
Long-term debt 29,383
Accrued compensation and retirement benefits 1,981
Accrued income taxes 3,406
Deferred tax liabilities 1,534
Other liabilities 908
Total liabilities 47,379
Shareholders equity
Ordinary shares 0
Additional paid-in capital 31,839
Retained earnings 31,524
Accumulated other comprehensive loss (3,253)
Total shareholders equity 60,110
Noncontrolling interests 145
Total equity 60,255
Total liabilities and equity $107,634

Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

a. Use the financial statements along with the additional information below to forecast property, plant and equipment, net for fiscal year ended April 2020.

$ millions April 27, 2018 Actual April 26, 2019 Actual April 2020 Forecast
Net sales $35,944 $36,668 $33,002
CAPEX 1,282 1,134
Depreciation expense 985 895
Property, plant, and equipment, gross 12,311 10,920
Property, plant, and equipment, net

Answer

b. Suppose the company discloses in a press release that accompanies its year-end SEC filing that anticipated CAPEX for fiscal year ended April 2020 is as follows.

Company anticipated CAPEX for fiscal year ended April 2020 $1,800 million

Use this guidance to refine your forecast of property, plant and equipment, net for fiscal year ended April 2020.

Property, plant, and equipment, net

Answer

million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Principles And Practices In Singapore

Authors: Dr Ernest Kan

5th Edition

9814838136, 978-9814838139

More Books

Students also viewed these Accounting questions

Question

CL I P COL Astro- L(1-cas0) Lsing *A=2 L sin(0/2)

Answered: 1 week ago