Forecast Income Statement and Balance Sheet

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

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

INCOME STATEMENT

Use the following assumptions to prepare a forecast of the companys income statement for fiscal year 2020. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers.Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate.

Income statement assumptions
Net sales increase	8%	growth
Cost of products sold	30.0%	of net sales
Research and development expense	7.6%	of net sales
Selling, general, and administrative expense	34.1%	of net sales
Amortization of intangible assets	5.8%	of net sales
Restructuring charges, net	75%	of 2019 restructuring expense
Certain litigation charges, net	$150	million
Other operating expense, net		No change in $ amount
Other nonoperating income, net		No change in $ amount
Interest expense		No change in $ amount
Income tax provision	15%	of pretax income
Income attributable to noncontrolling interests		No change in $ amount

	Medtronic PLC
	Consolidated Statement of Income
	$ millions
	For Fiscal Year Ended	2020
	Net sales	Answer
	Costs and expenses
	Cost of products sold	Answer
	Research and development expense	Answer
	Selling, general, and administrative expense	Answer
	Amortization of intangible assets	Answer
	Restructuring charges, net	Answer
	Certain litigation charges, net	Answer
	Other operating expense, net	Answer
	Operating profit	Answer
	Other nonoperating income, net	Answer
	Interest expense	Answer
	Income before income taxes	Answer
	Income tax provision	Answer
	Net income	Answer
	Net income loss attributable to noncontrolling interests	Answer
	Net income attributable to Medtronic	Answer

BALANCE SHEET

Use the following assumptions to prepare a forecast of the companys balance sheet for fiscal year 2020. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers.Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate.

Balance sheet assumptions
Investments		No change
Accounts receivable, less allowance	20.4%	of net sales
Inventories, net	12.3%	of net sales
Other current assets	7%	of net sales
Goodwill		No change
Tax assets	5%	of net sales
Other assets	3.3%	of net sales
Accounts payable	6.4%	of net sales
Accrued compensation (current liability)	7.2%	of net sales
Accrued compensation and retirement benefits (noncurrent liability)		No change
Accrued income taxes (current liability)	1.9%	of net sales
Other accrued expenses	9.6%	of net sales
Accrued income taxes (noncurrent liability)	9.3%	of net sales
Deferred tax liabilities	4.2%	of net sales
Other liabilities	2.5%	of net sales
Ordinary shares		No change
Accumulated other comprehensive loss		No change
Net income attributable to noncontrolling interest	$19	million
Dividends in FY2020	$2,853	million
CAPEX in FY2019	$1,134	$million, forecast CAPEX at historic % of net sales
Depreciation expense in FY2020	$950	million
Amortization expense in FY2020	$1,914	million
Debt due in FY2020	$838	million
Debt due in FY2021	$2,058	million

	Medtronic PLC
	Consolidated Balance Sheet
	$ millions	2020
	Current assets
	Cash and cash equivalents	Answer
	Investments	Answer
	Accounts receivable, net	Answer
	Inventories, net	Answer
	Other current assets	Answer
	Total current assets	Answer
	Property, plant, and equipment, net	Answer
	Goodwill	Answer
	Other intangible assets, net	Answer
	Tax assets	Answer
	Other assets	Answer
	Total assets	Answer
	Current liabilities
	Current debt obligations	Answer
	Accounts payable	Answer
	Accrued compensation	Answer
	Accrued income taxes	Answer
	Other accrued expenses	Answer
	Total current liabilities	Answer
	Long-term debt	Answer
	Accrued compensation and retirement benefits	Answer
	Accrued income taxes	Answer
	Deferred tax liabilities	Answer
	Other liabilities	Answer
	Total liabilities	Answer
	Shareholders equity
	Ordinary shares	Answer
	Additional paid-in capital	Answer
	Retained earnings	Answer
	Accumulated other comprehensive loss	Answer
	Total shareholders equity	Answer
	Noncontrolling interests	Answer
	Total equity	Answer
	Total liabilities and equity	Answer

\begin{tabular}{|c|c|} \hline \begin{tabular}{c} Medtronic PLC \\ Consolidated Statement of Income \end{tabular} & \begin{tabular}{c} April \\ 26 , \\ 2019 \end{tabular} \\ \hline Net sales & $30,557 \\ \hline \multicolumn{2}{|l|}{ Costs and expenses } \\ \hline Cost of products sold & 9,155 \\ \hline Research and development expense & 1,072 \\ \hline Selling, general, and administrative expense & 10,418 \\ \hline Amortization of intangible assets & 1,764 \\ \hline Restructuring charges, net & 91 \\ \hline Certain litigation charges, net & 166 \\ \hline Other operating expense, net & 258 \\ \hline Operating profit & 7,633 \\ \hline Other nonoperating income, net & (172) \\ \hline Interest expense & 1,444 \\ \hline Income before income taxes & 6,361 \\ \hline Income tax provision & 547 \\ \hline Net income & 5,814 \\ \hline Net income loss attributable to noncontrolling interests & (19) \\ \hline Net income attributable to Medtronic & $5,795 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \begin{tabular}{c} Medtronic PLC \\ Consolidated Balance Sheet \end{tabular} & \begin{tabular}{l} April \\ 26, \\ 2019 \end{tabular} \\ \hline \multicolumn{2}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & $4,393 \\ \hline Investments & 5,455 \\ \hline Accounts receivable, net & 6,222 \\ \hline Inventories, net & 3,753 \\ \hline Other current assets & 986 \\ \hline Total current assets & 20,809 \\ \hline Property, plant, and equipment, net & 4,675 \\ \hline Goodwill & 39,959 \\ \hline Other intangible assets, net & 20,560 \\ \hline Tax assets & 699 \\ \hline Other assets & 1,014 \\ \hline Total assets & $87,716 \\ \hline \multicolumn{2}{|l|}{ Current liabilities } \\ \hline Current debt obligations & $838 \\ \hline Accounts payable & 1,953 \\ \hline Accrued compensation & 2,189 \\ \hline Accrued income taxes & 567 \\ \hline Other accrued expenses & 2,925 \\ \hline Total current liabilities & 8,472 \\ \hline Long-term debt & 24,486 \\ \hline Accrued compensation and retirement benefits & 1,651 \\ \hline Accrued income taxes & 2,838 \\ \hline Deferred tax liabilities & 1,278 \\ \hline Other liabilities & 348 \\ \hline Total liabilities & 39,073 \\ \hline \multicolumn{2}{|l|}{ Shareholders' equity } \\ \hline Ordinary shares & 0 \\ \hline Additional paid-in capital & 24,963 \\ \hline Retained earnings & 26,270 \\ \hline Accumulated other comprehensive loss & (2,711) \\ \hline Total shareholders' equity & 48,522 \\ \hline Noncontrolling interests & 121 \\ \hline Total equity & 48,643 \\ \hline Total liabilities and equity & $87,716 \\ \hline \end{tabular}