Refine Assumptions for Dividend and Retained Earnings Forecast Provided below is FY2016 information for Medtronic PLC.

Medtronic plc
Consolidated Statement of Income
($ millions)		Apr. 29, 2016
Net sales		$29,499
Costs and expenses
Cost of products sold		9,142
Research and development expenses		2,224
Selling, general, and administrative expense		9,469
Special charges (gains), net		70
Restructuring charge, net		290
Certain litigation charges, net		26
Acquisition-related items		283
Amortization of intangiable assets		1,931
Other expense, net		107
Operating profit		5,957
Interest expense, net		955
Income from operations before income taxes		5,002
Provision for income taxes		950
Net income		$4,052

Medtronic plc
Consolidated Balance Sheet
($ millions)		Apr. 29, 2016	Apr. 24, 2015
Current assets
Cash and cash equivalents		$3,042	$5,009
Investments		9,758	14,637
Accounts receivable		5,562	5,112
Inventories		3,473	3,463
Tax assets		697	1,335
Prepaid expenses and other current assets		1,234	1,454
Total current assets		23,766	31,010
Property, plant, and equipment, net		5,007	4,865
Goodwill		41,500	40,530
Other intangiable assets, net		26,899	28,101
Long-term tax assets		1,383	774
Other assets		1,559	1,737
Total assets		$100,114	$107,017
Current liabilities
Short-term borrowing		$1,159	$2,600
Accounts payable		1,709	1,610
Accrued compensation		1,712	1,611
Accrued income taxes		566	935
Deferred tax liabilities		-	119
Other accrued expenses		2,185	2,464
Total current liabilities		7,331	9,339
Long-term debt		30,247	33,752
Long-term accrued compensation		1,759	1,535
Long-term accrued income taxes		2,903	2,476
Long-term deferred tax liabilities		3,729	4,700
Other long-term liabilities		1,916	1,819
Total liabilities		47,885	53,621
Shareholders' equity
Ordinary shares		-	-
Retained earnings		54,097	54,580
Accumulated other comprehensive (loss)/income		(1,868)	(1,184)
Total shareholders' equity		52,229	53,396
Total liabilities and shareholders' equity		$100,114	$107,017

a. Use the financial statements along with the additional information below to forecast retained earnings for FY2017.

Forecasted net income	$5,018 million
Dividends to shareholders' in FY2016	2,194 million

Forecasted retained earnings $Answer

million b. Suppose the MD&A section of the Form 10-K and additional guidance from the company reveals the following additional information.

	2017 Est.	2016 Actual	2015 Actual
Dividends per share	$1.74	$1.52	$1.22

At FY2016 year-end (April 29, 2016), the company had approximately 1,400 million shares issued and outstanding. Use this information to refine your forecast of retained earnings for FY2017. Forecasted retained earnings $Answer

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Analyzing, Forecasting, and Interpreting Income Statement and Balance Sheet Following are the income statement and balance sheet of General Mills, Inc.

Income Statement, Fiscal Years Ended (in $ millions)	May 26, 2013	May 27, 2012	May 29, 2011
Net Sales	$ 17,774.1	$ 16,657.9	$ 14,880.2
Cost of Sales	11,350.2	10,613.2	8,926.7
Selling, general and administrative expenses	3,552.3	3,380.7	3,192.0
Divestitures (gain)	--	--	(17.4)
Restructuring, impairment, and other exit costs	19.8	101.6	4.4
Operating profit	2,851.8	2,562.4	2,774.5
Interest, net	316.9	351.9	346.3
Earnings before income taxes and after tax earnings from joint ventures	2,534.9	2,210.5	2,428.2
Income taxes	741.2	709.6	721.1
After-tax earnings from joint ventures	98.8	88.2	96.4
Net earnings, including earnings attributable to redeemable and noncontrolling interests	1,892.5	1,589.1	1,803.5
Net earnings attributable to redeemable and noncontrolling interests	37.3	21.8	5.2
Net earnings attributable to General Mills	$ 1,855.2	$ 1,567.3	$ 1,798.3

Balance Sheet (in millions except per share data)	May 26, 2013	May 27, 2012
Assets
Current assets
Cash and cash equivalents	$ 741.4	$ 471.2
Receivables	1,446.4	1,323.6
Inventories	1,545.5	1,478.8
Deferred income taxes	128.0	59.7
Prepaid expenses and other current assets	437.6	358.1
Total current assets	4,298.9	3,691.4
Land, buildings, and equipment	3,878.1	3,652.7
Goodwill	8,622.2	8,182.5
Other intangible assets	5,015.1	4,704.9
Other assets	843.7	865.3
Total assets	$ 22,658.0	$ 21,096.8
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$ 1,423.2	$ 1,148.9
Current portion of long-term debt	1,443.3	741.2
Notes payable	599.7	526.5
Other current liabilities	1,827.7	1,426.6
Total current liabilities	5,293.9	3,843.2
Long-term debt	5,926.1	6,161.9
Deferred income taxes	1,389.1	1,171.4
Other liabilities	1,952.9	2,189.8
Total liabilities	14,562.0	13,366.3
Redeemable interest	967.5	847.8
Stockholders' equity
Common stock, 754.6 shares issued, $0.10 par value	75.5	75.5
Additional paid-in capital	1,166.6	1,308.4
Retained earnings	10,702.6	9,958.5
Common stock in treasury, at cost, shares of 113.8 and 106.1	(3,687.2)	(3,177.0)
Accumulated other comprehensive loss	(1,585.3)	(1,743.7)
Total stockholders' equity	6,672.2	6,421.7
Noncontrolling interests	456.3	461.0
Total Equity	7,128.5	6,882.7
Total liabilities and shareholders' equity	$ 22,658.0	$ 21,096.8

Forecast General Mill's fiscal 2014 income statement using the following relations (assume "no change" for accounts not listed). Assume that depreciation and amortization expense is included as part of selling, general and administrative expense ($ millions).

Net sales growth	5.0%
Cost of sales/Net sales	63.9%
Selling, general and administrative expenses/Net sales	20.0%
Divestitures (gain), net	$--
Restructuring, impairment, and other exit costs	$--
Interest, net	$316.9
Income tax expense/Pretax income	29.2%
After-tax earnings from joint ventures	$98.8
Net earnings attributable to noncontrolling interests/Net earnings before attribution	2.0%

Round answers to one decimal place.

Do not use negative signs with your answers.

Income Statement, Fiscal Years Ended ($ millions)	2014 Estimated
Net sales	$Answer
Cost of sales	Answer
Selling, general and administrative expenses	Answer
Divestitures (gain), net	Answer
Restructuring, impairment, and other exit costs	Answer
Operating profit	Answer
Interest. net	Answer
Earnings before income taxes and after-tax earnings from joint ventures	Answer
Income taxes	Answer
After-tax earnings from joint ventures	Answer
Net earnings, including earnings attributable to noncontrolling interests	Answer
Net earnings attributable to noncontrolling interests	Answer
Net earnings attributable to General Mills	$Answer

Forecast General Mill's fiscal 2014 balance sheet using the following relations (assume"no change" for accounts not listed). Assume that all capital expenditures are purchases of land, building and equipment, net. ($ millions).

Receivables/Net sales	8.1%
Inventories/Net sales	8.7%
Deferred income tax/Net sales	0.7%
Prepaid expenses and other current assets/Net sales	2.5%
Other intangible assets	$0 amortization
Other assets/Net sales	4.7%
Accounts payable/Net sales	8.0%
Other current liabilities/Net sales	10.3%
Current portion of long-term debt	$1,181.9
Deferred income taxes/Net sales	7.8%
Other liabilities/Net sales	11.0%
Capital expenditures/Net sales	3.5%
Depreciation/Prior year net PPE	16.1%
Dividends/Net earnings attributable to General Mills	46.8%

Round answers to one decimal place.

Do not use negative signs with your answers.

Balance Sheet ($ millions)	2014 Estimated
Assets
Cash and cash equivalents	$Answer
Receivables	Answer
Inventories	Answer
Deferred income taxes	Answer
Prepaid expenses and other	Answer
Total current assets	Answer
Land, buildings, and equipment	Answer
Goodwill	Answer
Other intangible assets	Answer
Other assets	Answer
Total assets	$Answer
Liabilities and equity
Accounts payable	$Answer
Current portion of long-term debt	Answer
Notes payable	Answer
Other current liabilities	Answer
Total current liabilities	Answer
Total long-term debt	Answer
Deferred income taxes	Answer
Other liabilities	Answer
Total liabilities	Answer
Redeemable interest	Answer
Stockholders equity
Common stock	Answer
Additional paid-in capital	Answer
Retained earnings	Answer
Common stock in treasury	Answer
Accumulated other comprehensive loss	Answer
Total stockholders' equity	Answer
Noncontrolling interests	Answer
Total equity	Answer
Total liabilities and Equity	$ Answer