Refine Assumptions for PPE Forecast

Following are the income statement and balance sheet for Medtronic PLC$.$

Medtronic PLC

Consolidated Statement of Income For Fiscal Year Ended

$ millions April $26,2019$

Net sales $$30,557$

Costs and expenses

Cost of products sold $9,155$

Research and development expense $2,330$

Selling, general, and administrative expense $10,418$

Amortization of intangible assets $1,764$

Restructuring charges, net $198$

Certain litigation charges, net $166$

Other operating expense, net $258$

Operating profit $6,268$

Other nonoperating income, net $(373)$

Interest expense $1,444$

Income before income taxes $5,197$

Income tax provision $547$

Net income $4,650$

Net income loss attributable to noncontrolling interests $(19)$

Net income attributable to Medtronic $$4,631$

Medtronic PLC

Consolidated Balance Sheet

$ millions April $26,2019$

Current assets

Cash and cash equivalents $$4,393$

Investments $5,455$

Accounts receivable, net $6,222$

Inventories, net $3,753$

Other current assets $2,144$

Total current assets $21,967$

Property, plant, and equipment, net $4,675$

Goodwill $39,959$

Other intangible assets, net $20,560$

Tax assets $1,519$

Other assets $1,014$

Total assets $$89,694$

Current liabilities

Current debt obligations $$838$

Accounts payable $1,953$

Accrued compensation $2,189$

Accrued income taxes $567$

Other accrued expenses $2,925$

Total current liabilities $8,472$

Long$-$term debt $24,486$

Accrued compensation and retirement benefits $1,651$

Accrued income taxes $2,838$

Deferred tax liabilities $1,278$

Other liabilities $757$

Total liabilities $39,482$

Shareholders$$ equity

Ordinary shares $0$

Additional paid$-$in capital $26,532$

Retained earnings $26,270$

Accumulated other comprehensive loss $(2,711)$

Total shareholders$$ equity $50,091$

Noncontrolling interests $121$

Total equity $50,212$

Total liabilities and equity $$89,694$

Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

a$.$ Use the financial statements along with the additional information below to forecast property, plant and equipment, net for fiscal year ended April $2020.$

$ millions April $27,2018$ Actual April $26,2019$ Actual April $2020$ Forecast

Net sales $$29,953$ $$30,557$ $$33,002$

CAPEX $1,0681,134$

Depreciation expense $821895$

Property, plant, and equipment, gross $10,25910,920$

Property, plant, and equipment, net

b$.$ Suppose the company discloses in a press release that accompanies its year$-$end SEC filing that anticipated CAPEX for fiscal year ended April $2020$ is as follows.

Company anticipated CAPEX for fiscal year ended April $2020$ $$1,500$ million

Use this guidance to refine your forecast of property, plant and equipment, net for fiscal year ended April $2020.$

Property, plant, and equipment, net million