Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help understanding the steps to arrive at each of thew answers. 5,847 70 78 Following is the income statement for Medtronic PLC for
I need help understanding the steps to arrive at each of thew answers.
5,847 70 78 Following is the income statement for Medtronic PLC for the year ended April 29, 2016. Consolidated Statements of Income Apr. 29, 2016 Apr. 24, 2015 Apr. 25, 2014 Net sales $27,945 $20,261 $17,005 Costs and expenses Cost of products sold 8,663 6,309 4,333 Research and development expense 2,224 1,640 1,477 Selling, general, and administrative expense 9,469 6,904 Special charges (gains), net (38) 40 Restructuring charges, net 290 237 Certain litigation charges, net 42 Acquisition-related items 283 550 117 Amortization of intangible assets 1,931 733 349 Other expense, net 107 118 181 Operating profit 4,882 3,766 3,813 Interest expense, net 955 280 108 Income from operations before income taxes 3,927 3,486 3,705 Provision for income taxes 746 811 640 Net income $3,181 $2,675 $3,065 26 770 Use the following assumptions to prepare a forecast of the company's income statement for FY2017. Net sales increase 1496 Cost of products sold 31.796 of net sales Research and development expense 7.796 of net sales Selling, general, and administrative expense 32.896 of net sales Special charges (gains), net $0 Certain litigation charges, net Restructuring charges, net 7596 of 2016 expense Acquistion-related items 1.096 Amortization of intangible assets No change Other expense, net and Interest expense, net No change Provision for income taxes 20% of pre-tax income $0 Instructions: Round answers to the nearest whole number. Use rounded answers for any subsequent computation: Do not use negative signs with any of your answers. Medtronic Inc. Forecasted Consolidated Statement of Income in Millions EST. 2017 Net sales $ 31,857 Costs and expenses Cost of products sold 38,608 x Research and development expense 2,395 x Selling, general, and administrative expense 12,575 x Restructuring charges, net 508 x Acquisition-related items Amortization of intangible assets Other expense, net Operating profit Interest expense, net Income from operations before income taxes Provision for income taxes OX Net income 286 x X X XStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started