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		$28,389
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		70
Restructuring charge, net		290
Certain litigation charges, net		26
Acquisition-related items		283
Amortization of intangiable assets		1,931
Other expense, net		107
Operating profit		4,847
Interest expense, net		955
Income from operations before income taxes		3,892
Provision for income taxes		739
Net income		$3,153

Medtronic plc
Consolidated Balance Sheets
($ millions)		Apr. 29, 2016	Apr. 24, 2015
Current assets
Cash and cash equivalents		$2,777	$4,744
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		23,501	30,745
Property, plant, and equipment, net		4,742	4,600
Goodwill		41,500	40,530
Other intangible assets, net		26,899	28,101
Long-term tax assets		1,383	774
Other assets		1,559	1,737
Total assets		$99,584	$106,487
Current liabilities
Short-term borrowings		$894	$2,335
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		7,066	9,074
Long-term debt		30,247	33,752
Long-term accrued compensation		1,759	1,535
Long-term accrued income taxes		2,903	2,476
Long-term deferred tax liabilities		3,729	4,700
Other long-term liabilities		1,916	1,819
Total liabilities		47,620	53,356
Shareholders' equity
Ordinary shares		-	-
Retained earnings		53,832	54,315
Accumulated other comprehensive (loss)		(1,868)	(1,184)
Total shareholders' equity		51,964	53,131
Total liabilities and shareholders' equity		$99,584	$106,487

QUESTIONS a. Use the financial statements along with the additional information below to forecast property, plant and equipment, net for FY2017.

CAPEX in FY2016	$1,013 million
Depreciation expense in FY2016	857 million
Forecasted FY2017 net sales	34,732 million

Round to the nearest million. Forecasted PPE, net for FY2017

$Answer 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. $Answer