
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 | $2,988 | $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 | 23,712 | 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 | $99,894 | $106,685 | |||
Current liabilities | |||||
Short-term borrowings | $1,105 | $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 | 7,277 | 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 | 47,831 | 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 | $99,894 | $106,685 |
Use the following assumptions to forecast the company’s balance sheet for FY2017.
Forecasted FY2017 net income | $5,151 | million | ||||||
Forecasted FY2017 net sales | $36,274 | 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 | $1,105 | million | ||||||
Current maturities of debt due in FY2018 | $6,176 | million | ||||||
Dividend payout ratio | 60.5% |
- Round your answers to the nearest whole number.
- Do not use negative signs with any of your answers.
Medtronic plc | ||||
Forecasted Consolidated Balance Sheet | ||||
($ millions) | EST. 2017 | |||
Current assets | ||||
Cash and cash equivalents | $Answer 1959
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Investments | Answer 9758
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Accounts receivable | Answer 7001
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Inventories | Answer 4353
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Tax assets | Answer 871
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Prepaid expenses and other current assets | Answer 1560
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Total current assets | Answer 21584
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Property, plant, and equipment, net | Answer 5232
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Goodwill | Answer 41500
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Other intangible assets, net | Answer 24968
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Long-term tax assets | Answer 1741
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Other assets | Answer 1959
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Total assets | $Answer 96984
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Current liabilities | ||||
Short-term borrowings | $Answer 6176
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Accounts payable | Answer 2140
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Accrued compensation | Answer 2140
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Accrued income taxes | Answer 725
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Other accrued expenses | Answer 2757
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Total current liabilities | Answer 13938
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Long-term debt | Answer 24071
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Long-term accrued compensation | Answer 1759
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Long-term accrued income taxes | Answer 3664
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Long-term deferred tax liabilities | Answer 4679
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Other long-term liabilities | Answer 2494
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Total liabilities | Answer 50505
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Shareholders’ equity | ||||
Ordinary shares | – | |||
Retained earnings | Answer 55966
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Accumulated other comprehensive (loss) | Answer 1868
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Total shareholders’ equity | Answer 54098
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Total liabilities and shareholders’ equity | $Answer 104603
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