Forecast Income Statement and Balance Sheet

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

Consolidated Statement of Income, 12 Months Ended ($ millions)	April 26, 2019
Net Sales	$30,557
Costs and expenses
Cost of products sold	9,155
Research and development expense	2,330
Selling, general, and administrative expense	10,418
Amortization of intangible assets	1,764
Restructuring charges, net	198
Certain litigation charges	166
Other operating expense, net	258
Operating profit	6,268
Other nonoperating income, net	373
Interest expense	1,444
Income before income taxes	5,197
Income tax provision	547
Net income	4,650
Net income attributable to noncontrolling interests	19
Net income attributable to Medtronic	$ 4,631

Consolidated Balance Sheet ($ millions)	April 26, 2019
Current assets
Cash and cash equivalents	$ 4,393
Investments	5,455
Accounts receivable, less allowances of $190	6,222
Inventories, net	3,753
Other current assets	2,144
Total current assets	21,967
Property, plant, and equipment, net	4,675
Goodwill	39,959
Other intangible assets, net	20,560
Tax assets	1,519
Other assets	1,014
Total assets	$89,694
Current liabilities
Current debt obligations	$838
Accounts payable	1,953
Accrued compensation	2,189
Accrued income taxes	567
Other accrued expenses	2,925
Total current liabilities	8,472
Long-term debt	24,486
Accrued compensation and retirement benefits	1,651
Accrued income taxes	2,838
Deferred tax liabilities	1,278
Other liabilities	757
Total liabilities	39,482
Shareholders' equity
Ordinary shares	0
Additional paid-in capital	26,532
Retained earnings	26,270
Accumulated other comprehensive loss	(2,711)
Total shareholders' equity	50,091
Noncontrolling interests	121
Total equity	50,212
Total liabilities and shareholders' equity	$89,694

Use the following assumptions to prepare a forecast of the companys income statement for fiscal year 2020.

Net sales increase	8%
Cost of product 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 expense
Certain litigation charges	$150 million
Other operating expense, net	No change
Interest expense	No change
Income tax provision	15% of pre-tax income
Income to noncontrolling interests	No change

• Round answers to the nearest whole number.
• Do not use negative signs with any of your answers.

Consolidated Statement of Income, 12 Months Ended ($ millions)	April 2020
Net Sales
Costs and expenses
Cost of products sold
Research and development expense
Selling, general, and administrative expense
Amortization of intangible assets
Restructuring charges, net
Certain litigation charges
Other operating expense, net
Operating profit
Other nonoperating income, net
Interest expense
Income before income taxes
Income tax provision
Net income
Net income attributable to noncontrolling interests
Net income attributable to Medtronic

Use the following assumptions to prepare a forecast of the companys balance sheet for fiscal year 2020.

Accounts receivable, less allowances	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 income taxes (current liability)	1.9% of net sales
Accrued income taxes (noncurrent liability)	9.3% of net sales
Other accrued expenses	9.6% of net sales
Accrued compensation and retirement benefits (noncurrent liability)	No change
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, forecast CAPEX at historic % of net sales	$1,134 million
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

• Round answers to the nearest whole number.
• Use a negative sign with your Accumulated other comprehensive loss answer.

Consolidated Balance Sheet ($ millions)	April 2020
Current assets
Cash and cash equivalents
Investments
Accounts receivable, less allowances of $190
Inventories, net
Other current assets
Total current assets
Property, plant, and equipment, net
Goodwill
Other intangible assets, net
Tax assets
Other assets
Total assets
Current liabilities
Current debt obligations
Accounts payable
Accrued compensation
Accrued income taxes
Other accrued expenses
Total current liabilities
Long-term debt
Accrued compensation and retirement benefits
Accrued income taxes
Deferred tax liabilities
Other liabilities
Total liabilities
Shareholders' equity
Ordinary shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Total shareholders' equity
Noncontrolling interests
Total equity
Total liabilities and shareholders' equity