Question

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

Answer 1

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