Forecast the Statement of Cash Flows 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 2,330 Selling, general, and administrative expense 10,418 Amortization of intangible assets 1,764 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 6,268 Other nonoperating income, net (373) Interest expense 1,444 Income before income taxes 5,197 Income tax provision 547 Net income 4,650 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $4,631 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 2,144 Total current assets 21,967 Property, plant, and equipment, net 4,675 Goodwill 39,959 Other intangible assets, net 20,560 Tax assets 1,519 Other assets 1,014 Total assets $89,694 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 757 Total liabilities 39,482 Shareholders’ equity Ordinary shares 0 Additional paid-in capital 26,532 Retained earnings 26,270 Accumulated other comprehensive loss (2,711) Total shareholders’ equity 50,091 Noncontrolling interests 121 Total equity 50,212 Total liabilities and equity $89,694 Prepare a forecast of the FY2020 statement of cash flows using the provided financial information and following assumptions. 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 Balance sheet assumptions Investments No change Accounts receivable, less allowance 20.4% of net sales Inventories, net 12.3% of net sales Other current assets 7% of net sales Goodwill No change Tax assets 5% of net sales Other assets 3.3% of net sales Accounts payable 6.4% of net sales Accrued compensation (current liability) 7.2% of net sales Accrued compensation and retirement benefits (noncurrent liability) No change Accrued income taxes (current liability) 1.9% of net sales Other accrued expenses 9.6% of net sales Accrued income taxes (noncurrent liability) 9.3% of net sales Deferred tax liabilities 4.2% of net sales Other liabilities 2.5% of net sales Ordinary shares No change Accumulated other comprehensive loss No change Net income attributable to noncontrolling interest $19 million Dividends in FY2020 $2,853 million CAPEX in FY2019 $1,134 $million, forecast CAPEX at historic % of net sales Depreciation expense in FY2020 $950 million Amortization expense in FY2020 $1,914 million Debt due in FY2020 $838 million Debt due in FY2021 $2,058 million Medtronic PLC Forecasted Statement of Cash Flows For year ended ($ millions) 2020 Net income (before non-controlling interest) Answer Add: Depreciation Answer Add: Amortization Answer Change in Accounts receivable Answer Change in Inventories, net Answer Change in Other current assets Answer Change in Tax assets Answer Change in Other assets Answer Change in Accounts payable Answer Change in Accrued compensation Answer Change in Accrued income taxes Answer Change in Other accrued expenses Answer Change in Accrued income taxes Answer Change in Deferred tax liabilities Answer Change in Other liabilities Answer Net cash from operating activities Answer Capital expenditures Answer Net cash from investing activities Answer Dividends Answer Change in current debt obligations Answer Change in L-T Debt Answer Net cash from financing activities Answer Net change in cash Answer Beginning cash Answer Ending cash Answer
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 | 2,330 |
Selling, general, and administrative expense | 10,418 |
Amortization of intangible assets | 1,764 |
Restructuring charges, net | 198 |
Certain litigation charges, net | 166 |
Other operating expense, net | 258 |
Operating profit | 6,268 |
Other nonoperating income, net | (373) |
Interest expense | 1,444 |
Income before income taxes | 5,197 |
Income tax provision | 547 |
Net income | 4,650 |
Net income loss attributable to noncontrolling interests | (19) |
Net income attributable to Medtronic | $4,631 |
Medtronic PLC | |
---|---|
Consolidated Balance Sheet | |
$ millions | April 26, 2019 |
Current assets | |
Cash and cash equivalents | $4,393 |
Investments | 5,455 |
6,222 | |
Inventories, net | 3,753 |
Other current assets | 2,144 |
Total current assets | 21,967 |
Property, plant, and equipment, net | 4,675 |
39,959 | |
Other intangible assets, net | 20,560 |
Tax assets | 1,519 |
Other assets | 1,014 |
Total assets | $89,694 |
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 |
1,278 | |
Other liabilities | 757 |
Total liabilities | 39,482 |
Shareholders’ equity | |
Ordinary shares | 0 |
Additional paid-in capital | 26,532 |
26,270 | |
Accumulated other comprehensive loss | (2,711) |
Total shareholders’ equity | 50,091 |
Noncontrolling interests | 121 |
Total equity | 50,212 |
Total liabilities and equity | $89,694 |
Prepare a forecast of the FY2020 statement of cash flows using the provided financial information and following assumptions.
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 |
Balance sheet assumptions | ||
---|---|---|
Investments | No change | |
Accounts receivable, less allowance | 20.4% | of net sales |
Inventories, net | 12.3% | of net sales |
Other current assets | 7% | of net sales |
Goodwill | No change | |
Tax assets | 5% | of net sales |
Other assets | 3.3% | of net sales |
Accounts payable | 6.4% | of net sales |
Accrued compensation (current liability) | 7.2% | of net sales |
Accrued compensation and retirement benefits (noncurrent liability) | No change | |
Accrued income taxes (current liability) | 1.9% | of net sales |
Other accrued expenses | 9.6% | of net sales |
Accrued income taxes (noncurrent liability) | 9.3% | of net sales |
Deferred tax liabilities | 4.2% | of net sales |
Other liabilities | 2.5% | of net sales |
Ordinary shares | No change | |
Accumulated other comprehensive loss | No change | |
Net income attributable to noncontrolling interest | $19 | million |
Dividends in FY2020 | $2,853 | million |
CAPEX in FY2019 | $1,134 | $million, forecast CAPEX at historic % of net sales |
Depreciation expense in FY2020 | $950 | million |
Amortization expense in FY2020 | $1,914 | million |
Debt due in FY2020 | $838 | million |
Debt due in FY2021 | $2,058 | million |
Medtronic PLC | ||
---|---|---|
Forecasted Statement of Cash Flows | ||
For year ended | ||
($ millions) | 2020 | |
Net income (before non-controlling interest) | Answer | |
Add: Depreciation | Answer | |
Add: Amortization | Answer | |
Change in Accounts receivable | Answer | |
Change in Inventories, net | Answer | |
Change in Other current assets | Answer | |
Change in Tax assets | Answer | |
Change in Other assets | Answer | |
Change in Accounts payable | Answer | |
Change in Accrued compensation | Answer | |
Change in Accrued income taxes | Answer | |
Change in Other accrued expenses | Answer | |
Change in Accrued income taxes | Answer | |
Change in Deferred tax liabilities | Answer | |
Change in Other liabilities | Answer | |
Net cash from operating activities | Answer | |
Capital expenditures | Answer | |
Net cash from investing activities | Answer | |
Dividends | Answer | |
Change in current debt obligations | Answer | |
Change in L-T Debt | Answer | |
Net cash from financing activities | Answer | |
Net change in cash | Answer | |
Beginning cash | Answer | |
Ending cash | Answer |
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