Operating Section of Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Medtronic PLC for the year ended April 29, 2019, and a forecasted income statement and balance sheet for 2020. MEDTRONIC PLC Income Statement For Fiscal Year Ended April 2019 April 2020 S millions Actual Est. Not sales. .. .. .. ...... $ 30,557 $33,002 Costs and expenses Cost of products sold . . . . . . . . .. . . .... ... 9.155 9,901 Research and development expense. 2.330 2,508 Seling, general, and administrative expense. 10,418 11,254 Amortization of intangible assets . .. 1,764 1,914 Restructuring charges, net . . . ... ... . 198 149 Certain litigation charges, net. . 166 150 Other operating expense, net. 258 258 Operating profit (loss). ..... . .. . . .. 6.268 6,868 Other nonoperating income, not. . (373) (373) interest expense. . . . . . .. .. .. ...... 1,444 1,444 Income (loss) before income taxes. 5.197 5,797 Income tax provision. . . . . .. .. ......... 547 870 Net income (1055) . . . . . . . .. . . .. . . . . .. .. 4.650 4,927 Net (income) loss attributable to noncontrolling interests. (19) (19 Net income (loss) attributable to Medtronic . . . . . . . . . $ 4,631 $ 4,908 MEDTRONIC PLC Balance Sheet At Fiscal Year-End Apr. 29. Apr. 30, $ millions 2019 Actual 2020 Est. Current assets Cash and cash equivalents. $ 4.393 $ 7.098 Investments. . ...... .. ... ...... 5.455 5.455 Accounts receivable, net. . . ... . .. 6,222 6.732 Inventories, nel. . . . . . . . 3,753 4.059 Other current assets. .... 2.144 2,310 Total current assets, . . . . . . .. . . . .. 21,967 25.654 Property, plant, and equipment, net .. . . . . . 4.675 4.988 Goodwil .. . . .. ................. 39.959 39.959 Other intangible assets, net . ... .. 20.560 18.646 Tax assets . . . . . 1.519 1.650 Other assets. . .. .. 1.014 1.089 Total assets $ 89.694 $91.986Apr. 29, Apr. 30, $ millions 2019 Actual 2020 Est. Current liabilities Current debt obligations . $ 838 $ 2,058 Accounts payable . .. ..... . . .... 1,953 2,112 Accrued compensation . 2.189 2,376 Accrued income taxes. .. .. 567 627 Other accrued expenses. . . 2,925 3,168 Total current liabilities . . . . 8.472 10,341 Long-term debt. . . . . . . . . . . . ...... 24.486 22,428 Accrued compensation and retirement benefits . 1.651 1,651 Accrued income taxes . 2.838 3,069 Deferred tax liabilities . . . .. . 1,278 1,386 Other liabilities . .. .. 757 825 Total Nabilities . . . . . . . . . . 39.482 39,700 Shareholders' equity Ordinary shares- par value $0,0001, 2.6 billion shares authorized, 1,340,697.595 shares issued and outstanding. . . .. . . . . Additional paid-in capital. . . . . . . . . . 26.532 26,532 Retained earnings ................... 26.270 28,325 Accumulated other comprehensive loss. (2,711) (2,711) Total shareholders' equity. .. . . . . . 50,091 52,146 Noncontrolling interests ... .. . . 121 140 Total equity ... . . . . . .. ....... 50.212 52,286 Total liabilities and equity .. . . . . . $89.694 $91,986 Begin with forecasted Net income of $4.927 million and prepare the operating activities section of a forecasted statement of cash flows for April 30, 2020, using the indirect method. Operating expenses (such as cost of sales and selling, general, and administrative expenses) for 2020 include estimated depreciation expense of $953 million. Estimated 2020 retained earnings reflects dividends of $2,853 million