Forecast an Income Statement

Following is the income statement for Medtronic PLC for the year ended April 29, 2016.

Consolidated Statements of Income				Apr. 29, 2016	Apr. 24, 2015	Apr. 25, 2014
Net sales				$29,944	$20,261	$17,005
Costs and expenses
Cost of products sold				9,283	6,309	4,333
Research and development expense				2,224	1,640	1,477
Selling, general, and administrative expense				9,469	6,904	5,847
Special charges (gains), net				70	(38)	40
Restructuring charges, net				290	237	78
Certain litigation charges, net				26	42	770
Acquisition-related items				283	550	117
Amortization of intangible assets				1,931	733	349
Other expense, net				107	118	181
Operating profit				6,261	3,766	3,813
Interest expense, net				955	280	108
Income from operations before income taxes				5,306	3,486	3,705
Provision for income taxes				1,008	811	640
Net income				$4,298	$2,675	$3,065

Use the following assumptions to prepare a forecast of the company's income statement for FY2017.

Net sales increase				20%
Cost of products sold				31.7%	of net sales
Research and development expense				7.7%	of net sales
Selling, general, and administrative expense				32.8%	of net sales
Special charges (gains), net				$0
Certain litigation charges, net				$0
Restructuring charges, net				75%	of 2016 expense
Acquistion-related items				1.0%
Amortization of intangible assets				No change
Other expense, net and Interest expense, net				No change
Provision for income taxes				20%	of pre-tax income

Instructions:

• Round answers to the nearest whole number.

• Use rounded answers for any subsequent computations.

• Do not use negative signs with any of your answers.

Medtronic Inc.
Forecasted Consolidated Statement of Income
in Millions				EST. 2017
Net sales				$Answer
Costs and expenses
Cost of products sold				Answer
Research and development expense				Answer
Selling, general, and administrative expense				Answer
Restructuring charges, net				Answer
Acquisition-related items				Answer
Amortization of intangible assets				Answer
Other expense, net				Answer
Operating profit				Answer
Interest expense, net				Answer
Income from operations before income taxes				Answer
Provision for income taxes				Answer
Net income				$Answer