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	$35,141
Costs and expenses
Cost of products sold	10,528
Research and development expense	2,680
Selling, general, and administrative expense	11,981
Amortization of intangible assets	2,029
Restructuring charges, net	228
Certain litigation charges, net	191
Other operating expense, net	297
Operating profit	7,207
Other nonoperating income, net	(429)
Interest expense	1,661
Income before income taxes	5,975
Income tax provision	629
Net income	5,346
Net income loss attributable to noncontrolling interests	(22)
Net income attributable to Medtronic	$5,324

Medtronic PLC
Consolidated Balance Sheet
$ millions	April 26, 2019
Current assets
Cash and cash equivalents	$5,052
Investments	6,273
Accounts receivable, net	7,155
Inventories, net	4,316
Other current assets	2,466
Total current assets	25,262
Property, plant, and equipment, net	5,376
Goodwill	45,953
Other intangible assets, net	23,644
Tax assets	1,747
Other assets	1,166
Total assets	$103,148
Current liabilities
Current debt obligations	$964
Accounts payable	2,246
Accrued compensation	2,517
Accrued income taxes	652
Other accrued expenses	3,364
Total current liabilities	9,743
Long-term debt	28,159
Accrued compensation and retirement benefits	1,899
Accrued income taxes	3,264
Deferred tax liabilities	1,470
Other liabilities	871
Total liabilities	45,406
Shareholders equity
Ordinary shares	0
Additional paid-in capital	30,510
Retained earnings	30,211
Accumulated other comprehensive loss	(3,118)
Total shareholders equity	57,603
Noncontrolling interests	139
Total equity	57,742
Total liabilities and equity	$103,148

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	$34,446	$35,141	$33,002
	CAPEX	1,228	1,134	?
	Depreciation expense	944	895	?
	Property, plant, and equipment, gross	11,798	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	$1,725	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?	million