Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881 Medtronic PLC Consolidated Balance Sheet $ millions April 26, 2019 Current assets Cash and cash equivalents $4,393 Investments 5,455 Accounts receivable, net 6,222 Inventories, net 3,753 Other current assets 900 Total current assets 20,723 Property, plant, and equipment, net 4,675 Goodwill 39,959 Other intangible assets, net 20,560 Tax assets 638 Other assets 1,014 Total assets $87,569 Current liabilities Current debt obligations $838 Accounts payable 1,953 Accrued compensation 2,189 Accrued income taxes 567 Other accrued expenses 2,925 Total current liabilities 8,472 Long-term debt 24,486 Accrued compensation and retirement benefits 1,651 Accrued income taxes 2,838 Deferred tax liabilities 1,278 Other liabilities 318 Total liabilities 39,043 Shareholders’ equity Ordinary shares 0 Additional paid-in capital 24,846 Retained earnings 26,270 Accumulated other comprehensive loss (2,711) Total shareholders’ equity 48,405 Noncontrolling interests 121 Total equity 48,526 Total liabilities and equity $87,569 Income Statement Balance Sheet Use the following assumptions to prepare a forecast of the company’s income statement for fiscal year 2020. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate. Income statement assumptions Net sales increase 8% growth Cost of products sold 30.0% of net sales Research and development expense 7.6% of net sales Selling, general, and administrative expense 34.1% of net sales Amortization of intangible assets 5.8% of net sales Restructuring charges, net 75% of 2019 restructuring expense Certain litigation charges, net $150 million Other operating expense, net No change in $ amount Other nonoperating income, net No change in $ amount Interest expense No change in $ amount Income tax provision 15% of pretax income Income attributable to noncontrolling interests No change in $ amount Medtronic PLC Consolidated Statement of Income $ millions For Fiscal Year Ended 2020 Net sales Answer Costs and expenses Cost of products sold Answer Research and development expense Answer Selling, general, and administrative expense Answer Amortization of intangible assets Answer Restructuring charges, net Answer Certain litigation charges, net Answer Other operating expense, net Answer Operating profit Answer Other nonoperating income, net Answer Interest expense Answer Income before income taxes Answer Income tax provision Answer Net income Answer Net income loss attributable to noncontrolling interests Answer Net income attributable to Medtronic Answer

Forecast Income Statement and Balance Sheet Following are the income statement and balance sheet for Medtronic PLC. Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Medtronic PLC Consolidated Statement of Income $ millions, For Fiscal Year Ended April 26, 2019 Net sales $30,557 Costs and expenses Cost of products sold 9,155 Research and development expense 979 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 83 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 7,734 Other nonoperating income, net (157) Interest expense 1,444 Income before income taxes 6,447 Income tax provision 547 Net income 5,900 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $5,881 Medtronic PLC Consolidated Balance Sheet $ millions April 26, 2019 Current assets Cash and cash equivalents $4,393 Investments 5,455 Accounts receivable, net 6,222 Inventories, net 3,753 Other current assets 900 Total current assets 20,723 Property, plant, and equipment, net 4,675 Goodwill 39,959 Other intangible assets, net 20,560 Tax assets 638 Other assets 1,014 Total assets $87,569 Current liabilities Current debt obligations $838 Accounts payable 1,953 Accrued compensation 2,189 Accrued income taxes 567 Other accrued expenses 2,925 Total current liabilities 8,472 Long-term debt 24,486 Accrued compensation and retirement benefits 1,651 Accrued income taxes 2,838 Deferred tax liabilities 1,278 Other liabilities 318 Total liabilities 39,043 Shareholders’ equity Ordinary shares 0 Additional paid-in capital 24,846 Retained earnings 26,270 Accumulated other comprehensive loss (2,711) Total shareholders’ equity 48,405 Noncontrolling interests 121 Total equity 48,526 Total liabilities and equity $87,569 Income Statement Balance Sheet Use the following assumptions to prepare a forecast of the company’s income statement for fiscal year 2020. Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_. Note: Use negative signs with answers, when appropriate. Income statement assumptions Net sales increase 8% growth Cost of products sold 30.0% of net sales Research and development expense 7.6% of net sales Selling, general, and administrative expense 34.1% of net sales Amortization of intangible assets 5.8% of net sales Restructuring charges, net 75% of 2019 restructuring expense Certain litigation charges, net $150 million Other operating expense, net No change in $ amount Other nonoperating income, net No change in $ amount Interest expense No change in $ amount Income tax provision 15% of pretax income Income attributable to noncontrolling interests No change in $ amount Medtronic PLC Consolidated Statement of Income $ millions For Fiscal Year Ended 2020 Net sales Answer Costs and expenses Cost of products sold Answer Research and development expense Answer Selling, general, and administrative expense Answer Amortization of intangible assets Answer Restructuring charges, net Answer Certain litigation charges, net Answer Other operating expense, net Answer Operating profit Answer Other nonoperating income, net Answer Interest expense Answer Income before income taxes Answer Income tax provision Answer Net income Answer Net income loss attributable to noncontrolling interests Answer Net income attributable to Medtronic Answer

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 77E: Ratio Analysis The following information was taken from Logsden Manufacturings trial balances as of...

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Forecast Income Statement and Balance Sheet

Following are the income statement and balance sheet for Medtronic PLC.

Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places.

Medtronic PLC
Consolidated Statement of Income
$ millions, For Fiscal Year Ended	April 26, 2019
Net sales	$30,557
Costs and expenses
Cost of products sold	9,155
Research and development expense	979
Selling, general, and administrative expense	10,418
Amortization of intangible assets	1,764
Restructuring charges, net	83
Certain litigation charges, net	166
Other operating expense, net	258
Operating profit	7,734
Other nonoperating income, net	(157)
Interest expense	1,444
Income before income taxes	6,447
Income tax provision	547
Net income	5,900
Net income loss attributable to noncontrolling interests	(19)
Net income attributable to Medtronic	$5,881

Medtronic PLC
Consolidated Balance Sheet
$ millions	April 26, 2019
Current assets
Cash and cash equivalents	$4,393
Investments	5,455
Accounts receivable, net	6,222
Inventories, net	3,753
Other current assets	900
Total current assets	20,723
Property, plant, and equipment, net	4,675
Goodwill	39,959
Other intangible assets, net	20,560
Tax assets	638
Other assets	1,014
Total assets	$87,569
Current liabilities
Current debt obligations	$838
Accounts payable	1,953
Accrued compensation	2,189
Accrued income taxes	567
Other accrued expenses	2,925
Total current liabilities	8,472
Long-term debt	24,486
Accrued compensation and retirement benefits	1,651
Accrued income taxes	2,838
Deferred tax liabilities	1,278
Other liabilities	318
Total liabilities	39,043
Shareholders’ equity
Ordinary shares	0
Additional paid-in capital	24,846
Retained earnings	26,270
Accumulated other comprehensive loss	(2,711)
Total shareholders’ equity	48,405
Noncontrolling interests	121
Total equity	48,526
Total liabilities and equity	$87,569

Income Statement
Balance Sheet

Use the following assumptions to prepare a forecast of the company’s income statement for fiscal year 2020.
Note: Complete the entire question in Excel (template provided above). Using Excel, format each answer to two decimal places. Use Increase Decimal or Decrease Decimal to adjust decimal places. Do not round answers. Then enter the answers into the provided spaces below with _two decimal places_.
Note: Use negative signs with answers, when appropriate.

Income statement assumptions
Net sales increase	8%	growth
Cost of products sold	30.0%	of net sales
Research and development expense	7.6%	of net sales
Selling, general, and administrative expense	34.1%	of net sales
Amortization of intangible assets	5.8%	of net sales
Restructuring charges, net	75%	of 2019 restructuring expense
Certain litigation charges, net	$150	million
Other operating expense, net		No change in $ amount
Other nonoperating income, net		No change in $ amount
Interest expense		No change in $ amount
Income tax provision	15%	of pretax income
Income attributable to noncontrolling interests		No change in $ amount

	Medtronic PLC
	Consolidated Statement of Income
	$ millions
	For Fiscal Year Ended	2020
	Net sales	Answer
	Costs and expenses
	Cost of products sold	Answer
	Research and development expense	Answer
	Selling, general, and administrative expense	Answer
	Amortization of intangible assets	Answer
	Restructuring charges, net	Answer
	Certain litigation charges, net	Answer
	Other operating expense, net	Answer
	Operating profit	Answer
	Other nonoperating income, net	Answer
	Interest expense	Answer
	Income before income taxes	Answer
	Income tax provision	Answer
	Net income	Answer
	Net income loss attributable to noncontrolling interests	Answer
	Net income attributable to Medtronic	Answer

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