Question

Medtronic plc
Consolidated Statements of Income
12 Months Ended ($ millions)		2017 EST.	Apr. 29, 2016
Net sales		$35,531	$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		7,525	5,291
Interest expense, net		955	955
Income from operations before income taxes		6,570	4,336
Provision for income taxes		1,314	798
Net income		$5,256	$3,538

Medtronic plc
Consolidated Balance Sheets
($ millions)		2017 EST.	Apr. 29, 2016
Current assets
Cash and cash equivalents		$5,663	$2,876
Investments		9,758	9,758
Accounts receivable		6,798	5,562
Inventories		4,230	3,473
Tax assets		844	697
Prepaid expenses and other current assets		1,513	1,234
Total current assets		28,806	23,600
Property, plant, and equipment, net		5,205	4,841
Goodwill		41,500	41,500
Other intangible assets, net		24,968	26,899
Long-term tax assets		1,697	1,383
Other assets		1,900	1,559
Total assets		$104,076	$99,782
Current liabilities
Short-term borrowing		6,176	993
Accounts payable		2,066	1,709
Accrued compensation		2,075	1,712
Accrued income taxes		695	566
Other accrued expenses		2,673	2,185
Total current liabilities		13,685	7,165
Long-term debt		24,071	30,247
Long-term accrued compensation & retirement benefits		1,759	1,759
Long-term accrued income taxes		3,562	2,903
Long-term deferred tax liabilities		4,538	3,729
Other long-term liabilities		2,322	1,916
Total liabilities		49,937	47,719
Shareholders' equity
Ordinary shares		-	-
Retained earnings		56,007	53,931
Accumulated other comprehensive (loss)		(1,868)	(1,868)
Total shareholders' equity		54,139	52,063
Total liabilities and stockholders' equity		$104,076	$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
Depreciation	Answer
Amortization	Answer
Accounts receivable	Answer
Inventories	Answer
Tax assets	Answer
Prepaid expense & other current assets	Answer
Long-term tax assets	Answer
Other assets	Answer
Accounts payable	Answer
Accrued compensation	Answer
Accrued income taxes	Answer
Other accrued expenses	Answer
Long-term accrued income taxes	Answer
Long-term deferred tax liabilities	Answer
Other long-term liabilities	Answer
Cash from operating activites	Answer
CAPEX	Answer
Cash from investing activites	Answer
Dividends	Answer
Current maturities of L-T debt	Answer
L-T debt	Answer
Cash from financing activites	Answer
Change in cash	Answer
Cash at start of year	Answer
Cash at end of year

Answer 1

a. The capex is computed as 3.6% X 35,351 = 1,279

b. Depreciation = 18.9% X Opening PPE = 18.9% X 4,841 = 915

c. Dividend Paid is computed as 60.5% X Net Income = 60.5% X 5,256 = 3,180.

The details of other Balance sheet items are listed below:

Medtronic plc
Consolidated Balance Sheets
($ millions)	2017 EST.	Apr. 29, 2016	Comment
Current assets
Cash and cash equivalents	5663	2876
Investments	9,758	9,758	No Change
Accounts receivable	6,798	5,562	Decrease in Operating Cash
Inventories	4,230	3,473	Decrease in Operating Cash
Tax assets	844	697	Decrease in Operating Cash
Prepaid expenses and other current assets	1,513	1,234	Decrease in Operating Cash
Total current assets	28,806	23,600
Property, plant, and equipment, net	5,205	4,841	Purchase of assets = Opening +Capex - Depreciation - Closing = 4841+1279-915-5205 = 0
Goodwill	41,500	41,500	No Change
Other intangible assets, net	24,968	26,899	Sale of Intangibles = Opening - Amortistion - Closing = 26,899-1,931-24,968 = 0
Long-term tax assets	1,697	1,383	Decrease in Operating Cash
Other assets	1,900	1,559	Decrease in Operating Cash
Total assets	$104,076	$99,782
Current liabilities
Short-term borrowing	6,176	993	Increase in Financing Cash. Disclosed under Current Maturities of L-T Debt
Accounts payable	2,066	1,709	Increase in Operating Cash
Accrued compensation	2,075	1,712	Increase in Operating Cash
Accrued income taxes	695	566	Increase in Operating Cash
Other accrued expenses	2,673	2,185	Increase in Operating Cash
Total current liabilities	13,685	7,165
Long-term debt	24,071	30,247	Decrease in Financing Cash
Long-term accrued compensation & retirement benefits	1,759	1,759	No Change
Long-term accrued income taxes	3,562	2,903	Increase in Operating Cash
Long-term deferred tax liabilities	4,538	3,729	Increase in Operating Cash
Other long-term liabilities	2,322	1,916	Increase in Operating Cash
Total liabilities	49,937	47,719
Shareholders' equity
Ordinary shares	-	-
Retained earnings	56,007	53,931
Accumulated other comprehensive (loss)	-1,868	-1,868	No Change
Total shareholders' equity	54,139	52,063
Total liabilities and stockholders' equity	$104,076	$99,782

Hence the Cash Flow statement is as follows:

Net income	5,256
Depreciation	915
Amortization	1,931
Accounts Receivable	-1,236
Inventories	-757
Tax assets	-147
Prepaid expense & other current assets	-279
Long-term tax assets	-314
Other assets	-341
Accounts payable	357
Accrued compensation	363
Accrued income taxes	129
Other accrued expenses	488
Long-term accrued income taxes	659
Long-term deferred tax liabilities	809
Other long-term liabilities	406
Cash from operating activites	8,239
CAPEX	-1,279
Cash from investing activites	-1,279
Dividend Paid	-3,180
Current Maturities of L-T debt	5,183
L-T debt	-6,176
Cash from financing activites	-4,173
Change in cash	2,787
Cash at start of year	2,876
Cash at end of year	5,663
AS per Balance Sheet	5,663