Refine Assumptions for PPE Forecast Provided below is FY2016 information for Medtronic PLC. Medtronic plc Consolidated Statement of Income ($ millions) Apr. 29, 2016 Net sales $28,833 Costs and expenses Cost of products sold 9,142 Research and development expenses 2,224 Selling, general, and administrative expense 9,469 Special charges (gains), net Restructuring charge, net 290 Certain litigation charges, net Acquisition-related items Amortization of intangiable assets 1,931 Other expense, net 107 Operating profit 5,291 Interest expense, net 955 Income from operations before income taxes 4,336 Provision for income taxes 798 Net income $3,538 Medtronic plc Consolidated Balance Sheets ($ millions) Apr. 29, 2016 Apr. 24, 2015 Current assets Cash and cash equivalents $2,876 $4,843 Investments 9,758 14,637 Accounts receivable 5,562 5,112 Inventories 3,473 3,463 Tax assets 697 1,335 Prepaid expenses and other current assets 1,234 1,454 Total current assets 23,600 30,844 Property, plant, and equipment, net 4,841 4,699 Goodwill 41,500 40,530 Other intangible assets, net 26,899 28,101 Long-term tax assets 1,383 774 Other assets 1,559 Total assets $99,782 $106,685 Current liabilities Short-term borrowings $993 $2,434 Accounts payable 1,709 1,610 Accrued compensation 1,712 1,611 Accrued income taxes 566 935 Deferred tax liabilities 119 Other accrued expenses 2,185 2,464 Total current liabilities 7,165 9,173 Long-term debt 30,247 33,752 1,737 30,247 1,759 2,903 3,729 1,916 47,719 33,752 1,535 2,476 4,700 1,819 53,455 Long-term debt Long-term accrued compensation Long-term accrued income taxes Long-term deferred tax liabilities Other long-term liabilities Total liabilities Shareholders' equity Ordinary shares Retained earnings Accumulated other comprehensive (loss) Total shareholders' equity Total liabilities and shareholders' equity 53,931 (1,868) 52,063 $99,782 54,414 (1,184) 53,230 $106,685 a. Use the financial statements along with the additional information below to forecast property, plant and equipment, net for FY2017. CAPEX in FY2016 Depreciation expense in FY2016 Forecasted FY2017 net sales $1,046 million 890 million 35,176 million Round to the nearest million. Forecasted PPE, net for FY2017 $ 0 million b. Suppose the company discloses in a press release that accompanies its year-end SEC filing that anticipated CAPEX for FY2017 is $1.5 billion. Use the guidance to refine your forecast of property, plant and equipment, net for FY2017. $0 million Refine Assumptions for PPE Forecast Provided below is FY2016 information for Medtronic PLC. Medtronic plc Consolidated Statement of Income ($ millions) Apr. 29, 2016 Net sales $28,833 Costs and expenses Cost of products sold 9,142 Research and development expenses 2,224 Selling, general, and administrative expense 9,469 Special charges (gains), net Restructuring charge, net 290 Certain litigation charges, net Acquisition-related items Amortization of intangiable assets 1,931 Other expense, net 107 Operating profit 5,291 Interest expense, net 955 Income from operations before income taxes 4,336 Provision for income taxes 798 Net income $3,538 Medtronic plc Consolidated Balance Sheets ($ millions) Apr. 29, 2016 Apr. 24, 2015 Current assets Cash and cash equivalents $2,876 $4,843 Investments 9,758 14,637 Accounts receivable 5,562 5,112 Inventories 3,473 3,463 Tax assets 697 1,335 Prepaid expenses and other current assets 1,234 1,454 Total current assets 23,600 30,844 Property, plant, and equipment, net 4,841 4,699 Goodwill 41,500 40,530 Other intangible assets, net 26,899 28,101 Long-term tax assets 1,383 774 Other assets 1,559 Total assets $99,782 $106,685 Current liabilities Short-term borrowings $993 $2,434 Accounts payable 1,709 1,610 Accrued compensation 1,712 1,611 Accrued income taxes 566 935 Deferred tax liabilities 119 Other accrued expenses 2,185 2,464 Total current liabilities 7,165 9,173 Long-term debt 30,247 33,752 1,737 30,247 1,759 2,903 3,729 1,916 47,719 33,752 1,535 2,476 4,700 1,819 53,455 Long-term debt Long-term accrued compensation Long-term accrued income taxes Long-term deferred tax liabilities Other long-term liabilities Total liabilities Shareholders' equity Ordinary shares Retained earnings Accumulated other comprehensive (loss) Total shareholders' equity Total liabilities and shareholders' equity 53,931 (1,868) 52,063 $99,782 54,414 (1,184) 53,230 $106,685 a. Use the financial statements along with the additional information below to forecast property, plant and equipment, net for FY2017. CAPEX in FY2016 Depreciation expense in FY2016 Forecasted FY2017 net sales $1,046 million 890 million 35,176 million Round to the nearest million. Forecasted PPE, net for FY2017 $ 0 million b. Suppose the company discloses in a press release that accompanies its year-end SEC filing that anticipated CAPEX for FY2017 is $1.5 billion. Use the guidance to refine your forecast of property, plant and equipment, net for FY2017. $0 million