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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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

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