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 $$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 $1,2821,134$

Depreciation expense $985895$

Property, plant, and equipment, gross $12,31110,920$

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 $2020$ $$1,800$ 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