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I just need answers for the last table please. Thank you. Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income
I just need answers for the last table please. Thank you.
Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statement and balance sheet of Seagate Technology for fiscal 2019. SEAGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019 ($ millions) Revenue $10,390 Cost of revenue 7,458 Product development 991 Marketing and administrative 453 Amortization of intangibles Restructuring and other, net (22) Total operating expenses 8,903 Income from operations 1,487 Interest income 84 Interest expense 224 Other, net income 25 Other expense, net 115 Income before income taxes 1,372 (Benefit) provision for income taxes (640) Net income $ 2,012 4,363 1,237 1,114 SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 ($ millions) Current assets Cash and cash equivalents $2,220 Accounts receivable, net 989 Inventories 970 Other current assets 184 Total current assets Property, equipment and leasehold improvements, net 1,869 Goodwill Other intangible assets, net 111 Deferred income taxes Other assets, net 191 Total assets $8,885 Current liabilities Accounts payable $1,420 Accrued employee compensation 169 Accrued warranty 91 Accrued expenses 552 Total current liabilities Long-term accrued warranty 104 Long-term accrued income taxes. Other noncurrent liabilities 130 Long-term debt, less current portion 4.253 Total liabilities 6,723 Shareholders equity Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively 0 Additional paid-in capital 6,545 Accumulated other comprehensive loss (34) Accumulated deficit (4,349) Total shareholders' equity 2,162 Total liabilities and shareholders' equity $8,885 2,232 4 Forecast Seagate Technology's 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated Revenue growth 59 Cost of revenue 71.8% Product development 9.54 Marketing and administrative 4.4% Restructuring and other, nie! $0 Income tax expense (pretax income) 2194 Forecast na change in the following income statement accounts: Amortization of intangibles, Interest income, Interest expense, and Other, net income . Round all answers to the nearest whole number. . Do not use negative signs with any of your answers in the income statement SEAGATE TECHNOLOGY PLC Consolidated Statement of Income Is millions) For Year Ended Revenue Cost of revenue Product development Marketing and administrative Aprtization of intangibles Restructuring and other, net Total aperating expenses Income from operations Interest income Interest expense Other, net Other experise, net Income before income taxes Provision for income taxes Net Income June 2020 S 10.910 7.833 1,036 480 23 0 0 9,372 1,538 84 224 25 115 1,423 299 S 1,124 Forecast Seagate Technology's 2020 balance sheet using the following forecast assumptions, which are expressed as a percentage of revenue unless atherwise indicated Accounts receivable.net 9.556 Inventories 9.396 Other current assets 1.896 Deferred income taxes 10.756 Other assets, net 1.8% Accounts payable 13.756 Accrued employee compensation 1.6% Accrued warranty 0.956 Accrued expenses 5.396 Long-term accrued warranty 1.056 Other noncurrent liabilities 1.3% Forecast na change in the following balance sheet accounts: Goodwill, Long-term accrued income taxes, Long-term debt, less current partian, Ordinary shares, and Accumulated ather comprehensive loss Assume that in 2020, CAPEX will be 5.896 of revenue, and depreciation expense will be 5.4% of Property, equipment and leasehold improvements, grass at the start of the year, which was $9,835 million Assume that in 2020, the company awards $99 million of stock-based compensation which increases Aditional paid-in capital by the same amount. Assume that the company routinely includes this form of compensation in operating expenses each year. The company has a dividend payout ratio of 35.4% of net income Round all answers to the nearest whole number. Use a negative sign for your Accumulated other comprehensive loss and Accumulated defcit answers. SEAGATE TECHNOLOGY PLC Forecasted Balance Sheet ($ millions) June 2020 Current assets Cash and cash equivalents $ OX Accounts receivable, net OX Inventories Ox Other current assets OX Total current assets OX Property, equipment and leasehold improvements, net OX Goodwill OX Other intangible assets, net OX Deferred income taxes OX Other assets, net OX Total assets $ OX Current liabilities $ Accounts payable OX Accrued employee compensation Ox Accrued warranty OX Accrued expenses OX Total current liabilities OX Long-term accrued warranty OX Long-term accrued income taxes OX Other noncurrent liabilities OX Long-term debt, less current portion OX Total liabilities OX Shareholders' equity Ordinary shares- par value $0.0001, 2.5 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively 0 Additional paid-in capital 6,644 Accumulated other comprehensive loss (34) Accumulated deficit (3,623) Total shareholders' equity 2,987 Total liabilities and shareholders' equity $ 9,841 b. What does the forecasted adjustment to balance the accounting equation from part a reveal to us about the forecasted cash balance and related financing needs of the company? Explain. Seagate will generate sufficient cash for the coming year. The cash balance decreases slightly, but not enough to require an adjustment. Seagate will generate sufficient cash for the coming year. The cash balance increases fairly significantly, we could adjust marketable securities, leaving total assets unchanged. Seagate will not generate sufficient cash for the coming year. The cash balance decreases fairly significantly, we could adjust marketable securities, leaving total assets unchanged. Seagate will generate sufficient cash for the coming year. The cash balance increases slightly, but not enough to require an adjustmentStep by Step Solution
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