Question

Module 12 - LO3 HW Problem M12-16 (only forecast Assets)- Medtronic. Please show your formulas and how you got there.

Consolidated Balance Sheet ($ millions)		4/29/2016	4/24/2015	Forecast / Percentages	Forcasted 2017
Current Assets
Cash and Cash equipvalents		$         2,876	$            4,843
Investments		$         9,758	$         14,637
Accounts receivable		$         5,562	$            5,112	19.30%
Inventories		$         3,473	$            3,463	12%
Tax assets		$             697	$            1,335	2.40%
Prepaid expenses and other current assets		$         1,234	$            1,454	4.30%
Total Current Assets		$       23,600	$         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	4.80%
Other assets		$         1,559	$            1,737
Total Assets		$       99,782	$       106,685
				Forecasted FY2017 Net Income	$              4,972
				Forecasted FY2017 Net Sales	$            35,176

Answer 1

Forecasted FY 2017 Net Sales = $35,176

Forecasted Accounts receivable = 19.30% of Sales (Given in question)

Forecasted Accounts Receivable = $35,176 x 19.30%

Forecasted Accounts Receivable =$6789 (Approx.)

Forecasted Inventories = 12% of Sales (Given in question)

Forecasted Inventories = $35,176 x 12%

Forecasted Inventories =$4,221(Approx.)

Forecasted Tax Assets = 2.40% of Sales (Given in question)

Forecasted Tax Assets= $35,176 x 2.40%

Forecasted Tax Assets =$844(Approx.)

Forecasted OtherAssets = 4.30% of Sales (Given in question)

Forecasted OtherAssets = $35,176 x 4.30%

Forecasted OtherAssets =$1,513(Approx.)

Forecasted Long Term Assets = 4.80% of Sales (Given in question)

Forecasted Long Term Assets = $35,176 x 4.80%

Forecasted Long Term Assets =$1,688(Approx.)