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Give step-by-step solution with explanation and final answer: Following are the income statement and balance sheet for Medtronic PLC for the fiscal year ( FY ) ended April 2 9 , FY 1 , and a forecasted income statement and balance sheet for FY 2 . Begin with forecasted Net income of $ 8 , 3 7 8 million and prepare the operating activities section of a forecasted statement of cash flows for April 3 0 , FY 2 , using the indirect method. Operating expenses ( such as cost of sales and selling, general, and administrative expenses ) for FY 2 include estimated depreciation expense of $ 1 , 6 2 0 million. Estimated FY 2 retained earnings reflects dividends of $ 4 , 8 5 0 million.Following are the income statement and balance sheet for Medtronic PLC Net sales $51,947 $56,103 Costs and expenses: Cost of products sold 15564 16,830 Research and development expense 3961 4264 Selling, general, and administrative expense 12711 13132 Amortization of intangible assets 2999 3.254 Restructuring charges, net EA Certain litigation charges, net 82 255 Other operating expense, net 433 a3 Operating profit loss) 10654 11,676 Other nonoperating income, net (624) (634) Interest expense 2455 2455 Income (loss) before income taxes 8833 855 Income tax provision 930 147 Net income (loss) 7903 8376 Net (income) loss attributable to noncontroling interests (32) (32) Net income (loss) attribucable to Medtronic 57.871 $8344 Current asses Cash and cash equivalents 57468 $12133 Investments 9274 3.274 Accounts receivable, net 10577 11.444 Inventories, net 6380 6900 Other current assets 3645 3.927 Total current asses 37344 43678 Property, plant, and equipment, net 7948 8415 Goodwill 67930 67.930 Other intangible assets, net 34952 31.608 Tax assets 2582 2805 Other assets 1724 1850 Total assets $152,480 $156,377 Current liabilities Current debe obligations $1425 $3499 ‘Accounts payable 3320 3500 ‘Accrued compensation 3721 403 Accrued income taxes 964 1,066 Other accrued expenses ag7a 538 Total currencliabilities 14403 17580 Long-term debt aas 38128 ‘Accrued compensation and retirement benefits 2807 2807 ‘Accrued income taxes 48s 5217 Deferred tax liabilities 2473 2.3% Other lilies 1287 1.403 Total lihilities 62121 67491 Shareholders’ equity Ordinary shares— par value $0.0001, 26 billion shares authorized, 1,340,607,595 shares issued and outstanding ‘Additional paickin capital as104 as104 Retained earnings aag59 ag15a Accumulated other comprehensive loss @503) (4609) Total shareholders’ equity, 85154 88,649 Noncontrolling incerests 06 238 Total ecuity 85350 88.887 Total liabilities and equity 152481 $156,278 Statement of Cash Flows - Operating Section (millions) Net income (before non-controlling interest) $8378 Add (Deduct) reconciling items: vi

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Give step-by-step solution with explanation and final answer: Following are the income statement and balance sheet for Medtronic PLC for the fiscal year ( FY ) ended April 2 9 , FY 1 , and a forecasted income statement and balance sheet for FY 2 . Begin with forecasted Net income of $ 8 , 3 7 8 million and prepare the operating activities section of a forecasted statement of cash flows for April 3 0 , FY 2 , using the indirect method. Operating expenses ( such as cost of sales and selling, general, and administrative expenses ) for FY 2 include estimated depreciation expense of $ 1 , 6 2 0 million. Estimated FY 2 retained earnings reflects dividends of $ 4 , 8 5 0 million.Uploaded ImageUploaded ImageUploaded ImageFollowing are the income statement and balance sheet for Medtronic PLC Net sales $51,947 $56,103 Costs and expenses: Cost of products sold 15564 16,830 Research and development expense 3961 4264 Selling, general, and administrative expense 12711 13132 Amortization of intangible assets 2999 3.254 Restructuring charges, net EA Certain litigation charges, net 82 255 Other operating expense, net 433 a3 Operating profit loss) 10654 11,676 Other nonoperating income, net (624) (634) Interest expense 2455 2455 Income (loss) before income taxes 8833 855 Income tax provision 930 147 Net income (loss) 7903 8376 Net (income) loss attributable to noncontroling interests (32) (32) Net income (loss) attribucable to Medtronic 57.871 $8344 Current asses Cash and cash equivalents 57468 $12133 Investments 9274 3.274 Accounts receivable, net 10577 11.444 Inventories, net 6380 6900 Other current assets 3645 3.927 Total current asses 37344 43678 Property, plant, and equipment, net 7948 8415 Goodwill 67930 67.930 Other intangible assets, net 34952 31.608 Tax assets 2582 2805 Other assets 1724 1850 Total assets $152,480 $156,377 Current liabilities Current debe obligations $1425 $3499 ‘Accounts payable 3320 3500 ‘Accrued compensation 3721 403 Accrued income taxes 964 1,066 Other accrued expenses ag7a 538 Total currencliabilities 14403 17580 Long-term debt aas 38128 ‘Accrued compensation and retirement benefits 2807 2807 ‘Accrued income taxes 48s 5217 Deferred tax liabilities 2473 2.3% Other lilies 1287 1.403 Total lihilities 62121 67491 Shareholders’ equity Ordinary shares— par value $0.0001, 26 billion shares authorized, 1,340,607,595 shares issued and outstanding ‘Additional paickin capital as104 as104 Retained earnings aag59 ag15a Accumulated other comprehensive loss @503) (4609) Total shareholders’ equity, 85154 88,649 Noncontrolling incerests 06 238 Total ecuity 85350 88.887 Total liabilities and equity 152481 $156,278 Statement of Cash Flows - Operating Section (millions) Net income (before non-controlling interest) $8378 Add (Deduct) reconciling items: vi

This is AI generated Response.
Asked by: Shikhar
Created at: 2025-09-30 06:24:01

Thought Process:

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**Preparing operating activities** I need to prepare the operating activities section for FY2 using the indirect method, starting with a forecasted Net Income of $8,378 million. I'll reference the income statement and balance sheet from FY1 and FY2 estimates, computing necessary adjustments like adding back depreciation and amortization, plus changes in working capital. I should transcribe key figures from the provided screenshots. For FY1, net sales are reported as $51,947 million, and after checking, that seems accurate for our calculations.**Reviewing income statement details** I need to clarify that interest is included in Net Income but only adjusted for working capital. When looking at the income statement, I see various line items including costs, expenses, and operating profit. For FY1 actual amounts, cost of products sold is $15,564 million, and the FY2 estimate is $16,830 million. Research and development costs are $3,961 million for FY1 and $4,264 million for FY2. The SG&A for FY1 is $17,119 million, while FY2 is $18,214 million. I just need to ensure I have these numbers correct, as some are tough to read.**Clarifying charges and profits** I'm looking at restructuring charges, which are $337 million for FY1 and $235 million for FY2. Now, for certain litigation charges, it’s $829 million for FY1, and it seems to show $0 for FY2, which seems off. I have to double-check that I see $235 million for the charges again. Other operating expenses are consistent at $439 million. Operating profit shows as $10,654 million for FY1, and possibly $13,263 million for FY2. It seems that nonoperating income is negative in FY2, which is surprising. Overall, net income appears to be $7,803 million.**Examining net income details** I’m looking at the figures where the net income attributable to noncontrolling interests is ($32 million), and the net income attributable to Medtronic is $7,871 million for FY1 and $8,344 million for FY2. The forecasted Net Income starts at $8,378 million, but the difference with the Medtronic figure is minor. I see they want me to prepare the operating activities section using these numbers. I must compute changes in working capital based on balance sheet items, including accounts receivable, inventories, and other current assets.**Analyzing assets and liabilities** I'm reviewing current assets, which include cash increasing from $7,468 million to $12,133 million, and accounts receivable rising from $10,577 million to $11,444 million. Total current assets jump from $37,344 million to $43,678 million. In current liabilities, I'm seeing current debt obligations go up significantly from $1,425 million to $3,499 million. I’ll also need to compute changes in working capital accounts for CFO, including adjustments like depreciation expense and working capital changes. The numbers are complex, but I should keep track of the variations carefully.**Calculating changes in assets and liabilities** I'm mapping out the changes in operating assets and liabilities, like accounts receivable, inventories, and tax assets. For tax assets, I think of them as a deferred tax, which could be added or subtracted from CFO based on increase or decrease. I’ll calculate the changes and effects on CFO step by step as needed, paying attention to each number carefully. The prompt suggests starting with the forecasted net income of $8,378 million, so I’ll base the calculations on this figure and other operational adjustments needed to arrive at the final number.**Finalizing CFO calculations** I'm working through the steps to calculate the CFO. I'll start with the net income of 8,378 million and add back noncash expenses like depreciation and amortization, totaling about 3,972. Next, I'll adjust for changes in various operating assets and liabilities. The numbers I get lead me to a final CFO estimate around 12,232 million, maybe closer to 12.23 billion. I want to ensure all calculations are clear and concise, so I'll list the adjustments with their impacts and provide a coherent step-by-step explanation for the user.

Final Answer:

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Step 1 — Start with forecasted net income (indirect method base) - Net income (before noncontrolling interests) = 8,378 Step 2 — Add back non‑cash charges included in operating expenses - Depreciation expense (given) = +1,620 - Amortization of intangible assets (per FY2 forecast IS) = +2,352 Subtotal after non‑cash items = 8,378 + 1,620 + 2,352 = 12,350 Step 3 — Adjust for changes in operating assets and liabilities (Use forecasted FY2 balance sheet vs. FY1 actual; increases in assets are uses of cash, increases in liabilities are sources of cash.) Changes in current operating assets - Accounts receivable: 11,444 − 10,577 = +867 increase → −867 - Inventories: 6,900 − 6,800 = +100 increase → −100 - Other current assets: 3,927 − 3,645 = +282 increase → −282 Changes in current operating liabilities - Accounts payable: 3,590 − 3,200 = +390 increase → +390 - Accrued compensation: 4,039 − 3,721 = +318 increase → +318 - Accrued income taxes (current): 1,086 − 964 = +122 increase → +122 - Other accrued expenses: 5,056 − 4,973 = +83 increase → +83 Other operating assets and liabilities - Tax assets (noncurrent): 2,888 − 2,528 = +360 increase → −360 - Accrued income taxes (long‑term): 5,217 − 4,825 = +392 increase → +392 - Deferred tax liabilities: 2,356 − 2,173 = +183 increase → +183 - Other assets: 1,851 − 1,724 = +127 increase → −127 - Accrued compensation and retirement benefits: 2,821 − 2,807 = +14 increase → +14 - Other liabilities: 1,403 − 1,287 = +116 increase → +116 Net change from operating working capital and other operating items = (−867 −100 −282 +390 +318 +122 +83 −360 +392 +183 −127 +14 +116) = −1,249 + 1,624 − 487 + 186 + 116 = −336 + 186 + 116 = +1,882 − 1,598? [Arithmetic expanded line by line above; final net change shown below in total.] Step 4 — Compute cash provided by operating activities Starting subtotal after non‑cash items (from Step 2): 12,350 Plus net effect of Step 3 items (sum of all adjustments above): −118 Cash provided by operating activities ≈ 12,232 Final answer — Operating activities section (FY2 forecast, $ millions) - Net income (before NCI): 8,378 - Depreciation expense: +1,620 - Amortization of intangible assets: +2,352 - Changes in operating assets and liabilities: - Accounts receivable: −867 - Inventories: −100 - Other current assets: −282 - Accounts payable: +390 - Accrued compensation: +318 - Accrued income taxes (current): +122 - Other accrued expenses: +83 - Tax assets (noncurrent): −360 - Accrued income taxes (long‑term): +392 - Deferred tax liabilities: +183 - Other assets: −127 - Accrued compensation and retirement benefits: +14 - Other liabilities: +116 Net cash provided by operating activities (indirect method): ≈ $12,232 million Notes - Depreciation of $1,620 was not shown on the income statement; it is included in operating expenses and must be added back. - Dividends of $4,850 affect financing activities, not operating cash flow, so they are not included here. - If your forecast for “Tax assets” differs slightly (the table is rounded), the operating cash flow will change by that difference. Using the figures shown above yields about $12.2 billion of operating cash inflow.

Question:

please prepare cashflow in table format

This is AI generated Response.
Asked by: Shikhar
Created at: 2025-09-30 06:31:14

Final Answer:

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# Medtronic PLC Forecasted Cash Flow Statement (Operating Activities Section) ### For the Fiscal Year Ended April 30, FY2 (in millions) | Description | Amount ($ millions) | |----------------------------------------------------|---------------------| | **Net income (before non-controlling interests)** | 8,378 | | **Adjustments for non-cash items:** | | | - Depreciation expense | +1,620 | | - Amortization of intangible assets | +2,352 | | **Subtotal after non-cash items** | 12,350 | | **Changes in operating assets and liabilities:** | | | - **Accounts receivable** | −867 | | - **Inventories** | −100 | | - **Other current assets** | −282 | | - **Accounts payable** | +390 | | - **Accrued compensation** | +318 | | - **Accrued income taxes (current)** | +122 | | - **Other accrued expenses** | +83 | | - **Tax assets (noncurrent)** | −360 | | - **Accrued income taxes (long-term)** | +392 | | - **Deferred tax liabilities** | +183 | | - **Other assets** | −127 | | - **Accrued compensation and retirement benefits** | +14 | | - **Other liabilities** | +116 | | **Net change from operating working capital** | −118 | | **Cash provided by operating activities** | 12,232 | ### Summary - **Total Cash Provided by Operating Activities:** $12,232 million ### Notes - The net cash provided by operating activities reflects the adjustments made for non-cash expenses and changes in working capital. - Dividends are not included in this section as they pertain to financing activities.

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