Forecast an Income Statement Following is the income statement for Medtronic PLC. Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019 Net sales $27,807 Costs and expenses   Cost of products sold 8,331 Research and development expense 2,330 Selling, general, and administrative expense 9,480 Amortization of intangible assets 1,605 Restructuring charges, net 198 Certain litigation charges, net 166 Other operating expense, net 258 Operating profit 5,439 Other nonoperating income, net (373) Interest expense 1,314 Income before income taxes 4,498 Income tax provision 547 Net income 3,951 Net income loss attributable to noncontrolling interests (19) Net income attributable to Medtronic $3,932   Use the following assumptions to prepare a forecast of the company’s income statement for FY2020.   Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.   Assumptions     Net sales increase 8% growth Cost of products sold 30.8% 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 $137 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     Consolidated Statement of Income ($ millions) For Fiscal Year Ended 2020   Net sales Answer   Costs and expenses     Cost of products sold Answer   Research and development expense Answer   Selling, general, and administrative expense Answer   Amortization of intangible assets Answer   Restructuring charges, net Answer   Certain litigation charges, net Answer   Other operating expense, net Answer   Operating profit Answer   Other nonoperating income, net Answer   Interest expense Answer   Income before income taxes Answer   Income tax provision Answer   Net income Answer   Net income loss attributable to noncontrolling interests Answer   Net income attributable to Medtronic Answer

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Forecast an Income Statement

Following is the income statement for Medtronic PLC.

Consolidated Statement of Income ($ millions) For Fiscal Year Ended April 26, 2019
Net sales $27,807
Costs and expenses  
Cost of products sold 8,331
Research and development expense 2,330
Selling, general, and administrative expense 9,480
Amortization of intangible assets 1,605
Restructuring charges, net 198
Certain litigation charges, net 166
Other operating expense, net 258
Operating profit 5,439
Other nonoperating income, net (373)
Interest expense 1,314
Income before income taxes 4,498
Income tax provision 547
Net income 3,951
Net income loss attributable to noncontrolling interests (19)
Net income attributable to Medtronic $3,932

 

Use the following assumptions to prepare a forecast of the company’s income statement for FY2020.

 

Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

 

Assumptions    
Net sales increase 8% growth
Cost of products sold 30.8% 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 $137 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

 

  Consolidated Statement of Income ($ millions) For Fiscal Year Ended 2020
  Net sales Answer
  Costs and expenses  
  Cost of products sold Answer
  Research and development expense Answer
  Selling, general, and administrative expense Answer
  Amortization of intangible assets Answer
  Restructuring charges, net Answer
  Certain litigation charges, net Answer
  Other operating expense, net Answer
  Operating profit Answer
  Other nonoperating income, net Answer
  Interest expense Answer
  Income before income taxes Answer
  Income tax provision Answer
  Net income Answer
  Net income loss attributable to noncontrolling interests Answer
  Net income attributable to Medtronic

Answer

 

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