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 $$32,085$

Costs and expenses

Cost of products sold $9,613$

Research and development expense $2,447$

Selling, general, and administrative expense $10,939$

Amortization of intangible assets $1,852$

Restructuring charges, net $208$

Certain litigation charges, net $174$

Other operating expense, net $271$

Operating profit $6,581$

Other nonoperating income, net $(392)$

Interest expense $1,516$

Income before income taxes $5,457$

Income tax provision $574$

Net income $4,883$

Net income loss attributable to noncontrolling interests $(20)$

Net income attributable to Medtronic $$4,863$

Medtronic PLC

Consolidated Balance Sheet

$ millions April $26,2019$

Current assets

Cash and cash equivalents $$4,613$

Investments $5,728$

Accounts receivable, net $6,533$

Inventories, net $3,941$

Other current assets $2,251$

Total current assets $23,066$

Property, plant, and equipment, net $4,909$

Goodwill $41,957$

Other intangible assets, net $21,588$

Tax assets $1,595$

Other assets $1,065$

Total assets $$94,180$

Current liabilities

Current debt obligations $$880$

Accounts payable $2,051$

Accrued compensation $2,298$

Accrued income taxes $595$

Other accrued expenses $3,071$

Total current liabilities $8,895$

Long$-$term debt $25,710$

Accrued compensation and retirement benefits $1,734$

Accrued income taxes $2,980$

Deferred tax liabilities $1,342$

Other liabilities $795$

Total liabilities $41,456$

Shareholders$$ equity

Ordinary shares $0$

Additional paid$-$in capital $27,860$

Retained earnings $27,584$

Accumulated other comprehensive loss $(2,847)$

Total shareholders$$ equity $52,597$

Noncontrolling interests $127$

Total equity $52,724$

Total liabilities and equity $$94,180$

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 $$31,451$ $$32,085$ $$33,002$

CAPEX $1,1211,134$

Depreciation expense $862895$

Property, plant, and equipment, gross $10,77210,920$

Property, plant, and equipment, net Answer $1$

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 $2020$ $$1,575$ 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 $2$

million