M12-13 - Forecast an income statement

Following is the income statement for Medtronic PLC for the year ended April 29, 2016.

Use the following assumptions to prepare a forecast of the company's income statement for FY2017

year ended April 29, 201 We obta $ mi Net : Module 11 1 Forecasting Financial Statements A11-15. Adjust Apr 24, 2015 MI1-13. Forecast an Income Statemen Apr LO2 Following is the income statement for Medtronic PLC for the $28,833 $20,261 $17,005 ted Statements of Income (S millions)Apr 29, 2016 Mari 9,142 2,224 9,469 70 290 26 283 1,931 107 6,309 1,640 6,904 (38) 237 42 550 733 118 Net sales. Costs and expenses Cost of products sold. Research and Selling, general, and administrative expense 4333 1477 ,847 sold.otexpense Cas Tot Acquisition-related items Amortization of intangible assets.... 5,291 955 3,766 280 Operating profit Interest expense, net 4,336 798 3,486 811 3,813 108 3,705 Requ De b. Is Id d. F Income from operations before income taxes... $2,675 S3.0e $ 3,085 Use the following assumptions to prepare a forecast of the company's income stat 22% Net sales increase Cost of products sold 31.7% of net sale Research and development expense 7.7% of net Selling, general, and administrative expense. . . . . . . . . .. . . . . . . . . . 32.8% of net Special charges (gains), net and Certain litigation charges, net .. $0 Restructuring charges, net 75% of 2016 32.8% of net sales 1.0% ne in $ amount No change in $ amount 20% of Pre-tax income