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Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended...

Forecast the Balance Sheet

Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.

Medtronic plc
Consolidated Balance Sheets
($ millions) Apr. 29, 2016 Apr. 24, 2015
Current assets
Cash and cash equivalents $2,768 $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 23,492 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 1,737
Total assets $99,674 $106,685
Current liabilities
Short-term borrowings $885 $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 7,057 9,173
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 47,611 53,455
Shareholders’ equity
Ordinary shares - -
Retained earnings 53,931 54,414
Accumulated other comprehensive (loss) (1,868) (1,184)
Total shareholders’ equity 52,063 53,230
Total liabilities and shareholders’ equity $99,674 $106,685

Use the following assumptions to forecast the company’s balance sheet for FY2017.

Forecasted FY2017 net income $4,839

million

Forecasted FY2017 net sales $34,079

million

Accounts receivable 19.3%

of net sales

Inventories 12.0%

of net sales

Tax assets 2.4%

of net sales

Prepaid expenses and other current assets 4.3%

of net sales

Long-term tax assets 4.8%

of net sales

Other assets 5.4%

of net sales

Accounts payable 5.9%

of net sales

Accrued compensation 5.9%

of net sales

Accrued income taxes 2.0%

of net sales

Other accrued expenses 7.6%

of net sales

Long-term accrued income taxes 10.1%

of net sales

Long-term deferred tax liabilities 12.9%

of net sales

Other long-term liabilities 6.6%

of net sales

Investments No change
Goodwill No change
Long-term accrued compensation and retirement benefits No change
Ordinary shares No change
Accumulated other comprehensive (loss) No change
CAPEX 3.6%

of net sales

Depreciation expense 18.9%

of prior year PPE, net

Amortization expense in FY2016 $1,931

million

Current maturities of debt due in FY2017 $885

million

Current maturities of debt due in FY2018 $6,176

million

Dividend payout ratio 60.5%

Round your answers to the nearest whole number.

Do not use negative signs with any of your answers.

Medtronic plc
Forecasted Consolidated Balance Sheet
($ millions) EST. 2017
Current assets
Cash and cash equivalents $Answer
Investments Answer
Accounts receivable Answer
Inventories Answer
Tax assets Answer
Prepaid expenses and other current assets Answer
Total current assets Answer
Property, plant, and equipment, net Answer
Goodwill Answer
Other intangible assets, net Answer
Long-term tax assets Answer
Other assets Answer
Total assets $Answer
Current liabilities
Short-term borrowings $Answer
Accounts payable Answer
Accrued compensation Answer
Accrued income taxes Answer
Other accrued expenses Answer
Total current liabilities Answer
Long-term debt Answer
Long-term accrued compensation Answer
Long-term accrued income taxes Answer
Long-term deferred tax liabilities Answer
Other long-term liabilities Answer
Total liabilities Answer
Shareholders’ equity
Ordinary shares -
Retained earnings Answer
Accumulated other comprehensive (loss) Answer
Total shareholders’ equity Answer
Total liabilities and shareholders’ equity $Answer

Solutions

Expert Solution

Medtronic plc
Forecasted Consolidated Balance Sheet
($ millions) EST. 2017
Current assets
Cash and cash equivalents BALANCING FIGURE 16179
Investments 9758
Accounts receivable 6577
Inventories 4089
Tax assets 818
Prepaid expenses and other current assets 1465
Total current assets 29129
Property, plant, and equipment, net 5153
Goodwill 41500
Other intangible assets, net 24968
Long-term tax assets 1636
Other assets 1840
Total assets 104226
Current liabilities
Short-term borrowings 7061
Accounts payable 2011
Accrued compensation 2011
Accrued income taxes 682
Other accrued expenses 2590
Total current liabilities 14354
Long-term debt 24071
Long-term accrued compensation 1739
Long-term accrued income taxes 3442
Long-term deferred tax liabilities 4396
Other long-term liabilities 2249
Total liabilities 50251
Shareholders’ equity
Ordinary shares 0
Retained earnings 55842
Accumulated other comprehensive (loss) -1868
Total shareholders’ equity 53974
Total liabilities and shareholders’ equity 104226

WORKINGS


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