Following are the income statement and balance sheet for Medtronic PLC.
| Consolidated Statement of Income, 12 Months Ended ($ millions) |
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 | 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 attributable to noncontrolling interests | 19 |
| Net income attributable to Medtronic | $ 4,631 |
| Consolidated Balance Sheet ($ millions) | April 26, 2019 |
|---|---|
| Current assets | |
| Cash and cash equivalents | $ 4,393 |
| Investments | 5,455 |
| Accounts receivable, less allowances of $190 | 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 shareholders’ equity | $89,694 |
Use the following assumptions to prepare a forecast of the company’s income statement for fiscal year 2020.
| Net sales increase | 8% |
| Cost of product 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 expense |
| Certain litigation charges | $150 million |
| Other operating expense, net | No change |
| Interest expense | No change |
| Income tax provision | 15% of pre-tax income |
| Income to noncontrolling interests | No change |
- Round answers to the nearest whole number.
- Do not use negative signs with any of your answers.
| Consolidated Statement of Income, 12 Months Ended ($ millions) |
April 2020 |
|---|---|
| Net Sales | |
| Costs and expenses | |
| Cost of products sold | |
| Research and development expense | |
| Selling, general, and administrative expense | |
| Amortization of intangible assets | |
| Restructuring charges, net | |
| Certain litigation charges | |
| Other operating expense, net | |
| Operating profit | |
| Other nonoperating income, net | |
| Interest expense | |
| Income before income taxes | |
| Income tax provision | |
| Net income | |
| Net income attributable to noncontrolling interests | |
| Net income attributable to Medtronic |
Use the following assumptions to prepare a forecast of the company’s balance sheet for fiscal year 2020.
| Accounts receivable, less allowances | 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 income taxes (current liability) | 1.9% of net sales |
| Accrued income taxes (noncurrent liability) | 9.3% of net sales |
| Other accrued expenses | 9.6% of net sales |
| Accrued compensation and retirement benefits (noncurrent liability) | No change |
| 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, forecast CAPEX at historic % of net sales | $1,134 million |
| Depreciation expense in FY2020 | $950 million |
| Amortization expense in FY2020 | $1,914 million |
| Debt due in FY2020 | $838 million |
| Debt due in FY2021 | $2,058 million |
- Round answers to the nearest whole number.
- Use a negative sign with your Accumulated other comprehensive loss answer.
| Consolidated Balance Sheet ($ millions) | April 2020 |
|---|---|
| Current assets | |
| Cash and cash equivalents | |
| Investments | |
| Accounts receivable, less allowances of $190 | |
| Inventories, net | |
| Other current assets | |
| Total current assets | |
| Property, plant, and equipment, net | |
| Goodwill | |
| Other intangible assets, net | |
| Tax assets | |
| Other assets | |
| Total assets | |
| Current liabilities | |
| Current debt obligations | |
| Accounts payable | |
| Accrued compensation | |
| Accrued income taxes | |
| Other accrued expenses | |
| Total current liabilities | |
| Long-term debt | |
| Accrued compensation and retirement benefits | |
| Accrued income taxes | |
| Deferred tax liabilities | |
| Other liabilities | |
| Total liabilities | |
| Shareholders’ equity | |
| Ordinary shares | |
| Additional paid-in capital | |
| Retained earnings | |
| Accumulated other comprehensive loss | |
| Total shareholders’ equity | |
| Noncontrolling interests | |
| Total equity | |
| Total liabilities and shareholders’ equity |
