Forecast the Balance SheetFollowing is the balance sheet for Medtronic PLC for the year ended April 29, 2016.Medtronic plcConsolidated Balance Sheets($ millions) Apr. 29, 2016Apr. 24, 2015Current assets Cash and cash equivalents $2,768$4,843Investments 9,75814,637Accounts receivable 5,5625,112Inventories 3,4733,463Tax assets 6971,335Prepaid expenses and other current assets 1,2341,454Total current assets 23,49230,844Property, plant, and equipment, net 4,8414,699Goodwill 41,50040,530Other intangible assets, net 26,89928,101Long-term tax assets 1,383774Other assets 1,5591,737Total assets $99,674$106,685Current liabilities Short-term borrowings $885$2,434Accounts payable 1,7091,610Accrued compensation 1,7121,611Accrued income taxes 566935Deferred tax liabilities -119Other accrued expenses 2,1852,464Total current liabilities 7,0579,173Long-term debt 30,24733,752Long-term accrued compensation 1,7591,535Long-term accrued income taxes 2,9032,476Long-term deferred tax liabilities 3,7294,700Other long-term liabilities 1,9161,819Total liabilities 47,61153,455Shareholders’ equity Ordinary shares --Retained earnings 53,93154,414Accumulated other comprehensive (loss) (1,868)(1,184)Total shareholders’ equity 52,06353,230Total liabilities and shareholders’ equity $99,674$106,685Use 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 receivable19.3% of net sales Inventories12.0% of net sales Tax assets2.4% of net sales Prepaid expenses and other current assets4.3% of net sales Long-term tax assets4.8% of net sales Other assets5.4% of net sales Accounts payable5.9% of net sales Accrued compensation5.9% of net sales Accrued income taxes2.0% of net sales Other accrued expenses7.6% of net sales Long-term accrued income taxes10.1% of net sales Long-term deferred tax liabilities12.9% of net sales Other long-term liabilities6.6% of net sales InvestmentsNo change GoodwillNo change Long-term accrued compensation and retirement benefitsNo change Ordinary sharesNo change Accumulated other comprehensive (loss)No change CAPEX3.6% of net sales Depreciation expense18.9% 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$6,176 million Dividend payout ratio60.5% Round your answers to the nearest whole number.Use a negative sign with your Accumulated other comprehensive loss answer. Medtronic plcForecasted Consolidated Balance Sheet($ millions) EST. 2017Current 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

Forecast balance sheet is a projection of assets, liabilities and equity at a future point in time,…

Answered: Forecast the Balance Sheet Following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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.
Use a negative sign with your Accumulated other comprehensive loss answer.

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016. Medtronic plc Consolidated Balance Sheets