Refine Assumptions for Dividend and Retained Earnings Forecast Provided below is FY2016 information for Medtronic PLC. 2,224 Medtronic plc Consolidated Statement of Income ($ millions) Apr. 29, 2016 Net sales $28,167 Costs and expenses Cost of products sold 9,142 Research and development expenses Selling, general, and administrative expense 9,469 Special charges (gains), net Restructuring charge, net Certain litigation charges, net Acquisition-related items Amortization of intangiable assets 1,931 Other expense, net 107 Operating profit 4.625 Interest expense, net 955 Income from operations before income taxes 3,670 Provision for income taxes 697 Net income 52,973 283 Medtronic plc Consolidated Balance Sheet ($ millions) Apr. 29, 2016 Apr. 24, 2015 Current assets Cash and cash equivalents $2,710 $4,677 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 23,434 30,678 Property, plant, and equipment, net 4,675 4,533 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 $99,450 $106,353 Current liabilities Short-term borrowing $827 $2,268 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 6,999 9,007 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 47,553 53,289 Shareholders' equity Ordinary shares Retained earnings 53,765 54,248 Accumulated other comprehensive (loss)/income (1,868) (1,184) Total shareholders' equity 51,897 53,064 Total liabilities and shareholders' equity $99,450 $106,353 a. Use the financial statements along with the additional information below to forecast retained earnings for FY2017. Forecasted net income Dividends to shareholders' in FY2016 $4,831 million 2,084 million Forecasted retained earnings $ 0 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 $1.70 $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 $ 52,616 million