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	1,068	1,134
	Depreciation expense	821	895
	Property, plant, and equipment, gross	10,259	10,920
	Property, plant, and equipment, net			5049 is wrong

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	Answer	5779 is wrong