Question

Forecast the Statement of Cash Flows Refer to the Medtronic PLC financial statement below. Use the information to forecast Medtronic's FY2017 statement of cash flows. Medtronic plc Consolidated Statements of Income 12 Months Ended ($ millions) 2017 EST. Apr. 29, 2016 Net sales $35,864 $28,833 Costs and expenses Cost of products sold 11,151 9,142 Research and development expense 2,709 2,224 Selling, general, and administrative expense 11,538 9,469 Special charges (gains), net - 70 Restructuring charges, net 218 290 Certain litigation charges, net - 26 Acquisition-related items 352 283 Amortization of intangible assets 1,931 1,931 Other expense, net 107 107 Operating profit 7,858 5,291 Interest expense, net 955 955 Income from operations before income taxes 6,903 4,336 Provision for income taxes 1,381 798 Net income $5,522 $3,538 Medtronic plc Consolidated Balance Sheets ($ millions) 2017 EST. Apr. 29, 2016 Current assets Cash and cash equivalents $5,732 $2,876 Investments 9,758 9,758 Accounts receivable 6,804 5,562 Inventories 4,236 3,473 Tax assets 844 697 Prepaid expenses and other current assets 1,513 1,234 Total current assets 28,887 23,600 Property, plant, and equipment, net 5,217 4,841 Goodwill 41,500 41,500 Other intangible assets, net 24,968 26,899 Long-term tax assets 1,703 1,383 Other assets 1,900 1,559 Total assets $104,175 $99,782 Current liabilities Short-term borrowing 6,176 993 Accounts payable 2,060 1,709 Accrued compensation 2,075 1,712 Accrued income taxes 689 566 Other accrued expenses 2,673 2,185 Total current liabilities 13,673 7,165 Long-term debt 24,071 30,247 Long-term accrued compensation & retirement benefits 1,759 1,759 Long-term accrued income taxes 3,568 2,903 Long-term deferred tax liabilities 4,538 3,729 Other long-term liabilities 2,322 1,916 Total liabilities 49,931 47,719 Shareholders' equity Ordinary shares - - Retained earnings 56,112 53,931 Accumulated other comprehensive (loss) (1,868) (1,868) Total shareholders' equity 54,244 52,063 Total liabilities and stockholders' equity $104,175 $99,782 Additional information CAPEX/Net sales 3.6% Depreciation expense/Prior year PPE, net 18.9% Dividend payout ratio 60.5% Use a negative sign with you answer to indicate a decrease in cash. Medtronic plc Forecasted Statement of Cash Flows ($ millions) 2016 Est. Net income $Answer 0 Depreciation Answer 0 Amortization Answer 0 Accounts receivable Answer 0 Inventories Answer 0 Tax assets Answer 0 Prepaid expense & other current assets Answer 0 Long-term tax assets Answer 0 Other assets Answer 0 Accounts payable Answer 0 Accrued compensation Answer 0 Accrued income taxes Answer 0 Other accrued expenses Answer 0 Long-term accrued income taxes Answer 0 Long-term deferred tax liabilities Answer 0 Other long-term liabilities Answer 0 Cash from operating activites Answer 0 CAPEX Answer 0 Cash from investing activites Answer 0 Dividends Answer 0 Current maturities of L-T debt Answer 0 L-T debt Answer 0 Cash from financing activites Answer 0 Change in cash Answer 0 Cash at start of year Answer 0 Cash at end of year $Answer 0

Answer 1

Projected 2017 Cash flow Statement:
	Amount $'m
Cash flow from Operating Activities:
Net Income	5522
add: Dep	915	4841*18.9%
add:amortisation	1931
Less:AR increa	-1242
less: invent increas	-763
less: tax assets	-147
less: prepaid exp incre	-279
add:ST borrowing	5183
add:AP increa	351
add: AC increa	363
add:AIT increa	123
add: Oth acc exp increa	488
Net cash inflow of operating activities	12445
Cash flow from investing activities:
less: purchase of PPE	-1291	4841-(5217 +915)
less: purch of tax assets	-320
less:other assets purchase	-341
add: LTAI tax	665
add: LTDT liabi	809
add:OLT liabi	406
Net cash inflow of investing activities	-72
Cash flow from financing activities:
Less: LTD decrea	-6176
Less: dividend paid	-3341	5522*60.5%
Net cash outflow of financing activities:	-9517
Net cashflow of all activities	2856
Add: Opening cash	2876
Closing cash	5732