Forecast the Statement of Cash Flows

Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended 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, net $166$

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 loss attributable to noncontrolling interests $(19)$

Net income attributable to Medtronic $$4,631$

Medtronic PLC Consolidated Balance Sheet $ millions April $26,2019$

Current assets

Cash and cash equivalents $$4,393$

Investments $5,455$

Accounts receivable, net $6,222$

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 equity $$89,694$

Prepare a forecast of the FY$2020$ statement of cash flows using the provided financial information and following assumptions. 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 $30\mathrm{.}0\%$ of net sales Research and development expense $7\mathrm{.}6\%$ of net sales Selling, general, and administrative expense $34\mathrm{.}1\%$ of net sales Amortization of intangible assets $5\mathrm{.}8\%$ 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

Balance sheet assumptions

Investments No change

Accounts receivable, less allowance $20\mathrm{.}4\%$ of net sales

Inventories, net $12\mathrm{.}3\%$ of net sales

Other current assets $7\%$ of net sales

Goodwill No change

Tax assets $5\%$ of net sales

Other assets $3\mathrm{.}3\%$ of net sales

Accounts payable $6\mathrm{.}4\%$ of net sales

Accrued compensation $($current liability$)7\mathrm{.}2\%$ of net sales

Accrued compensation and retirement benefits $($noncurrent liability$)$ No change

Accrued income taxes $($current liability$)1\mathrm{.}9\%$ of net sales

Other accrued expenses $9\mathrm{.}6\%$ of net sales

Accrued income taxes $($noncurrent liability$)9\mathrm{.}3\%$ of net sales

Deferred tax liabilities $4\mathrm{.}2\%$ of net sales

Other liabilities $2\mathrm{.}5\%$ of net sales

Ordinary shares No change

Accumulated other comprehensive loss No change

Net income attributable to noncontrolling interest $$19$ million

Dividends in FY$2020$ $$2,853$ million

CAPEX in FY$2019$ $$1,134$ $million, forecast CAPEX at historic $\%$ of net sales Depreciation expense in FY$2020$ $$950$ million

Amortization expense in FY$2020$ $$1,914$ million

Debt due in FY$2020$ $$838$ million

Debt due in FY$2021$ $$2,058$ million

Medtronic PLC Forecasted Statement of Cash Flows For year ended $($$ millions$)2020$

Net income $($before non$-$controlling interest$)$

Add: Depreciation

Add: Amortization

Change in Accounts receivable

Change in Inventories, net

Change in Other current assets

Change in Tax assets

Change in Accounts payable

Change in Accrued compensation

Change in Accrued income taxes

Change in Other accrued expenses

Change in Accrued income taxes

Change in Deferred tax liabilities

Change in Other liabilities

Net cash from operating activities

Capital expenditures

Net cash from investing activities

Dividends

Change in current debt obligations

Change in L$-$T Debt

Net cash from financing activities

Net change in cash

Beginning cash

Ending cash