Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016. Medtronic plc Consolidated Balance Sheets ($

Forecast the Balance Sheet

Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.

Medtronic plc
Consolidated Balance Sheets
($ millions) Apr. 29, 2016 Apr. 24, 2015
Current assets
Cash and cash equivalents $2,768 $4,843
Investments 9,758 14,637
Accounts receivable 5,562 5,112
Inventories 3,473 3,463
Tax assets 697 1,335
Prepaid expenses and other current assets 1,234 1,454
Total current assets 23,492 30,844
Property, plant, and equipment, net 4,841 4,699
Goodwill 41,500 40,530
Other intangible assets, net 26,899 28,101
Long-term tax assets 1,383 774
Other assets 1,559 1,737
Total assets $99,674 $106,685
Current liabilities
Short-term borrowings $885 $2,434
Accounts payable 1,709 1,610
Accrued compensation 1,712 1,611
Accrued income taxes 566 935
Deferred tax liabilities - 119
Other accrued expenses 2,185 2,464
Total current liabilities 7,057 9,173
Long-term debt 30,247 33,752
Long-term accrued compensation 1,759 1,535
Long-term accrued income taxes 2,903 2,476
Long-term deferred tax liabilities 3,729 4,700
Other long-term liabilities 1,916 1,819
Total liabilities 47,611 53,455
Shareholders equity
Ordinary shares - -
Retained earnings 53,931 54,414
Accumulated other comprehensive (loss) (1,868) (1,184)
Total shareholders equity 52,063 53,230
Total liabilities and shareholders equity $99,674 $106,685

Use the following assumptions to forecast the companys balance sheet for FY2017.

Forecasted FY2017 net income $4,839

million

Forecasted FY2017 net sales $34,079

million

Accounts receivable 19.3%

of net sales

Inventories 12.0%

of net sales

Tax assets 2.4%

of net sales

Prepaid expenses and other current assets 4.3%

of net sales

Long-term tax assets 4.8%

of net sales

Other assets 5.4%

of net sales

Accounts payable 5.9%

of net sales

Accrued compensation 5.9%

of net sales

Accrued income taxes 2.0%

of net sales

Other accrued expenses 7.6%

of net sales

Long-term accrued income taxes 10.1%

of net sales

Long-term deferred tax liabilities 12.9%

of net sales

Other long-term liabilities 6.6%

of net sales

Investments No change
Goodwill No change
Long-term accrued compensation and retirement benefits No change
Ordinary shares No change
Accumulated other comprehensive (loss) No change
CAPEX 3.6%

of net sales

Depreciation expense 18.9%

of prior year PPE, net

Amortization expense in FY2016 $1,931

million

Current maturities of debt due in FY2017 $885

million

Current maturities of debt due in FY2018 $6,176

million

Dividend payout ratio 60.5%

Round your answers to the nearest whole number.

Do not use negative signs with any of your answers.

image text in transcribed

image text in transcribed

Medtronic plc Forecasted Consolidated Balance Sheet S millions) Current assets Cash and cash equivalents EST. 2017 3,484 X 9,758 Accounts receivable 6,677 X 4,091 X Tax assets 819X Prepaid expenses and other current assets 1,466 X Total current assets 26,194 X Property, plant, and equipment, net 6,152 X Goodwil 40,630 X Other intangible assets, net 26,999 X Long-term tax assets 1,638 X Other assets 1,840 Total assets 02,251X Medtronic plc Forecasted Consolidated Balance Sheet S millions) Current assets Cash and cash equivalents EST. 2017 3,484 X 9,758 Accounts receivable 6,677 X 4,091 X Tax assets 819X Prepaid expenses and other current assets 1,466 X Total current assets 26,194 X Property, plant, and equipment, net 6,152 X Goodwil 40,630 X Other intangible assets, net 26,999 X Long-term tax assets 1,638 X Other assets 1,840 Total assets 02,251X

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

Financial Accounting An Introduction

Authors: Alex Watson, Jacqui Kew

5th Edition

0190425520, 978-0190425524

More Books

Students also viewed these Accounting questions