Refine Assumptions for PPE Forecast Following are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expenses 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 (loss) 6,268 Other nonoperating income, net (373) Interest expense 1,444 Income (loss) before income taxes 5,197 Income tax provision 547 Net income (loss) 4,650 Net (income) loss attributable to noncontrolling interests (19) Net income (loss) attributable to Medtronic $ 4,631 Consolidated Balance Sheet ($ millions) April 26, 2019 Current assets $ 4,393 5,455 6,222 3,753 Cash and cash equivalents Investments Accounts receivable, less allowances of $190 Inventories, net Other current assets Total current assets Property, plant, and equipment, net Goodwill Other intangible assets, net Tax assets 2,144 21,967 4,675 39,959 20,560 1,519 1,014 $89,694 Other assets Total assets Current liabilities $838 1,953 2,189 567 Current debt obligations Accounts payable Accrued compensation Accrued income taxes Other accrued expenses Total current liabilities Long-term debt Accrued compensation and retirement benefits Accrued income taxes Deferred tax liabilities Other liabilities Total liabilities Shareholders' equity Ordinary shares Additional paid-in capital Retained earnings 2,925 8,472 24,486 1,651 2,838 1,278 757 39,482 0 26,532 26,270 Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total liabilities and shareholders' equity 26,270 (2,711) 50,091 121 50,212 $89,694 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 Net sales CAPEX Depreciation expense Property, plant, and equipment, gross April 27, 2018 April 26, 2019 April 2020 Actual Actual Forecast $29,953 $30,557 $33,002 1,068 1,134 821 895 10,259 10,920 Round to the nearest million. Forecasted PPE, net for FY2020 $ million 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 $1.5 billion. Use this guidance to refine your forecast of property, plant and equipment, net for fiscal year ended April 2020. $ million Refine Assumptions for PPE Forecast Following are the income statement and balance sheet for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expenses 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 (loss) 6,268 Other nonoperating income, net (373) Interest expense 1,444 Income (loss) before income taxes 5,197 Income tax provision 547 Net income (loss) 4,650 Net (income) loss attributable to noncontrolling interests (19) Net income (loss) attributable to Medtronic $ 4,631 Consolidated Balance Sheet ($ millions) April 26, 2019 Current assets $ 4,393 5,455 6,222 3,753 Cash and cash equivalents Investments Accounts receivable, less allowances of $190 Inventories, net Other current assets Total current assets Property, plant, and equipment, net Goodwill Other intangible assets, net Tax assets 2,144 21,967 4,675 39,959 20,560 1,519 1,014 $89,694 Other assets Total assets Current liabilities $838 1,953 2,189 567 Current debt obligations Accounts payable Accrued compensation Accrued income taxes Other accrued expenses Total current liabilities Long-term debt Accrued compensation and retirement benefits Accrued income taxes Deferred tax liabilities Other liabilities Total liabilities Shareholders' equity Ordinary shares Additional paid-in capital Retained earnings 2,925 8,472 24,486 1,651 2,838 1,278 757 39,482 0 26,532 26,270 Retained earnings Accumulated other comprehensive loss Total shareholders' equity Noncontrolling interests Total equity Total liabilities and shareholders' equity 26,270 (2,711) 50,091 121 50,212 $89,694 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 Net sales CAPEX Depreciation expense Property, plant, and equipment, gross April 27, 2018 April 26, 2019 April 2020 Actual Actual Forecast $29,953 $30,557 $33,002 1,068 1,134 821 895 10,259 10,920 Round to the nearest million. Forecasted PPE, net for FY2020 $ million 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 $1.5 billion. Use this guidance to refine your forecast of property, plant and equipment, net for fiscal year ended April 2020. $ million