Forecast an Income Statement | Income Statement For Medtronic PLC

Forecast an Income StatementFollowing is the income statement for Medtronic PLC for the year ended April 29, 2016.

Forecast an Income Statement

Following is the income statement for Medtronic PLC for the year ended April 29, 2016.

Consolidated Statements of Income Apr. 29, 2016 Apr. 24, 2015 Apr. 25, 2014
Net sales $29,721 $20,261 $17,005
Costs and expenses
Cost of products sold 9,214 6,309 4,333
Research and development expense 2,224 1,640 1,477
Selling, general, and administrative expense 9,469 6,904 5,847
Special charges (gains), net 70 (38) 40
Restructuring charges, net 290 237 78
Certain litigation charges, net 26 42 770
Acquisition-related items 283 550 117
Amortization of intangible assets 1,931 733 349
Other expense, net 107 118 181
Operating profit 6,107 3,766 3,813
Interest expense, net 955 280 108
Income from operations before income taxes 5,152 3,486 3,705
Provision for income taxes 979 811 640
Net income $4,173 $2,675 $3,065

Use the following assumptions to prepare a forecast of the company’s income statement for FY2017.

 

Net sales increase 18%
Cost of products sold 31.7% of net sales
Research and development expense 7.7% of net sales
Selling, general, and administrative expense 32.8% of net sales
Special charges (gains), net $0
Certain litigation charges, net $0
Restructuring charges, net 75% of 2016 expense
Acquistion-related items 1.0% of net sales
Amortization of intangible assets No change
Other expense, net and Interest expense, net No change
Provision for income taxes 20% of pre-tax income

Instructions:

  • Round answers to the nearest whole number.
  • Use rounded answers for any subsequent computations.
  • Do not use negative signs with any of your answers.
Medtronic Inc.
Forecasted Consolidated Statement of Income
in Millions EST. 2017
Net sales $Answer 35071

 

Costs and expenses
Cost of products sold Answer 11118

 

Research and development expense Answer 2700

 

Selling, general, and administrative expense Answer 11503

 

Restructuring charges, net Answer 218

 

Acquisition-related items Answer 351

 

Amortization of intangible assets Answer 1931

 

Other expense, net Answer 107

 

Operating profit Answer 7143

 

Interest expense, net Answer 955

 

Income from operations before income taxes Answer 6188

 

Provision for income taxes Answer 1238

 

Net income $Answer 4950

 

Sharing is caring!

Have any Question or Comment?

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!