Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for
ID: 2535491 • Letter: F
Question
Forecast the Balance Sheet
Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.
Use the following assumptions to forecast the company’s balance sheet for FY2017.
million
million
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of net sales
of prior year PPE, net
million
million
million
Round your answers to the nearest whole number.
Do not use negative signs with any of your answers.
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 $106,685Explanation / Answer
Medtronic plc Forecasted Consolidated Balance Sheet ($ millions) Apr. 29, 2016 % of sales Notes EST. 2017 Current assets Cash and cash equivalents $2,768 $ 5,555.62 Investments 9,758 No change $ 9,758.00 Accounts receivable 5,562 19.30% $ 6,577.25 Inventories 3,473 12.00% $ 4,089.48 Tax assets 697 2.40% $ 817.90 Prepaid expenses and other current assets 1,234 4.30% $ 1,465.40 Total current assets 23,492 $ 28,263.64 Property, plant, and equipment, net 4,841 Add CAPEX less depreciation $ 5,153.00 Goodwill 41,500 No change $ 41,500.00 Other intangible assets, net 26,899 Less amortization of $ 1931 $ 24,968.00 Long-term tax assets 1,383 4.80% $ 1,635.79 Other assets 1,559 5.40% $ 1,840.27 Total assets $99,674 $103,360.70 Current liabilities Short-term borrowings $885 $(885) +$6176 $ 6,176.00 Accounts payable 1,709 5.90% $ 2,010.66 Accrued compensation 1,712 5.90% $ 2,010.66 Accrued income taxes 566 2.00% $ 681.58 Other accrued expenses 2,185 7.60% $ 2,590.00 Total current liabilities 7,057 $ 13,468.91 Long-term debt 30,247 30247-6176 $ 24,071.00 Long-term accrued compensation 1,759 No change $ 1,759.00 Long-term accrued income taxes 2,903 10.10% $ 3,441.98 Long-term deferred tax liabilities 3,729 12.90% $ 4,396.19 Other long-term liabilities 1,916 6.60% $ 2,249.21 Total liabilities 47,611 $ 49,386.29 Shareholders’ equity Ordinary shares - No change - Retained earnings 53,931 $ 55,842.41 Accumulated other comprehensive (loss) -1,868 No change $ (1,868.00) Total shareholders’ equity 52,063 $ 53,974.41 Total liabilities and shareholders’ equity $99,674 $103,360.70