Question
Following are the income statement and balance sheet for Medtronic PLC. Medtronic PLC Consolidated Statement of Income For Fiscal Year Ended $ millions April 26,
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 | $36,668 |
Costs and expenses | |
Cost of products sold | 10,986 |
Research and development expense | 2,796 |
Selling, general, and administrative expense | 12,502 |
Amortization of intangible assets | 2,117 |
Restructuring charges, net | 238 |
Certain litigation charges, net | 199 |
Other operating expense, net | 310 |
Operating profit | 7,520 |
Other nonoperating income, net | (448) |
Interest expense | 1,733 |
Income before income taxes | 6,235 |
Income tax provision | 656 |
Net income | 5,579 |
Net income loss attributable to noncontrolling interests | (23) |
Net income attributable to Medtronic | $5,556 |
Medtronic PLC | |
---|---|
Consolidated Balance Sheet | |
$ millions | April 26, 2019 |
Current assets | |
Cash and cash equivalents | $5,272 |
Investments | 6,546 |
Accounts receivable, net | 7,466 |
Inventories, net | 4,504 |
Other current assets | 2,573 |
Total current assets | 26,361 |
Property, plant, and equipment, net | 5,610 |
Goodwill | 47,951 |
Other intangible assets, net | 24,672 |
Tax assets | 1,823 |
Other assets | 1,217 |
Total assets | $107,634 |
Current liabilities | |
Current debt obligations | $1,006 |
Accounts payable | 2,344 |
Accrued compensation | 2,627 |
Accrued income taxes | 680 |
Other accrued expenses | 3,510 |
Total current liabilities | 10,167 |
Long-term debt | 29,383 |
Accrued compensation and retirement benefits | 1,981 |
Accrued income taxes | 3,406 |
Deferred tax liabilities | 1,534 |
Other liabilities | 908 |
Total liabilities | 47,379 |
Shareholders equity | |
Ordinary shares | 0 |
Additional paid-in capital | 31,839 |
Retained earnings | 31,524 |
Accumulated other comprehensive loss | (3,253) |
Total shareholders equity | 60,110 |
Noncontrolling interests | 145 |
Total equity | 60,255 |
Total liabilities and equity | $107,634 |
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 | $35,944 | $36,668 | $33,002 | |
CAPEX | 1,282 | 1,134 | ||
Depreciation expense | 985 | 895 | ||
Property, plant, and equipment, gross | 12,311 | 10,920 | ||
Property, plant, and equipment, net | Answer
|
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 | $1,800 | million |
Use this guidance to refine your forecast of property, plant and equipment, net for fiscal year ended April 2020.
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