Additional information Use a negative sign with you answer to indicate a decreas

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Additional information

Use a negative sign with you answer to indicate a decrease in cash.

Medtronic plc Consolidated Statements of Income 12 Months Ended ($ millions) 2017 EST. Apr. 29, 2016 Net sales $35,531 $28,833 Costs and expenses Cost of products sold 11,151 9,142 Research and development expense 2,709 2,224 Selling, general, and administrative expense 11,538 9,469 Special charges (gains), net - 70 Restructuring charges, net 218 290 Certain litigation charges, net - 26 Acquisition-related items 352 283 Amortization of intangible assets 1,931 1,931 Other expense, net 107 107 Operating profit 7,525 5,291 Interest expense, net 955 955 Income from operations before income taxes 6,570 4,336 Provision for income taxes 1,314 798 Net income $5,256 $3,538

Explanation / Answer

a. The capex is computed as 3.6% X 35,351 = 1,279

b. Depreciation = 18.9% X Opening PPE = 18.9% X 4,841 = 915

c. Dividend Paid is computed as 60.5% X Net Income = 60.5% X 5,256 = 3,180.

The details of other Balance sheet items are listed below:

Hence the Cash Flow statement is as follows:

Medtronic plc Consolidated Balance Sheets ($ millions) 2017 EST. Apr. 29, 2016 Comment Current assets Cash and cash equivalents 5663 2876 Investments 9,758 9,758 No Change Accounts receivable 6,798 5,562 Decrease in Operating Cash Inventories 4,230 3,473 Decrease in Operating Cash Tax assets 844 697 Decrease in Operating Cash Prepaid expenses and other current assets 1,513 1,234 Decrease in Operating Cash Total current assets 28,806 23,600 Property, plant, and equipment, net 5,205 4,841 Purchase of assets = Opening +Capex - Depreciation - Closing = 4841+1279-915-5205 = 0 Goodwill 41,500 41,500 No Change Other intangible assets, net 24,968 26,899 Sale of Intangibles = Opening - Amortistion - Closing = 26,899-1,931-24,968 = 0 Long-term tax assets 1,697 1,383 Decrease in Operating Cash Other assets 1,900 1,559 Decrease in Operating Cash Total assets $104,076 $99,782 Current liabilities Short-term borrowing 6,176 993 Increase in Financing Cash. Disclosed under Current Maturities of L-T Debt Accounts payable 2,066 1,709 Increase in Operating Cash Accrued compensation 2,075 1,712 Increase in Operating Cash Accrued income taxes 695 566 Increase in Operating Cash Other accrued expenses 2,673 2,185 Increase in Operating Cash Total current liabilities 13,685 7,165 Long-term debt 24,071 30,247 Decrease in Financing Cash Long-term accrued compensation & retirement benefits 1,759 1,759 No Change Long-term accrued income taxes 3,562 2,903 Increase in Operating Cash Long-term deferred tax liabilities 4,538 3,729 Increase in Operating Cash Other long-term liabilities 2,322 1,916 Increase in Operating Cash Total liabilities 49,937 47,719 Shareholders' equity Ordinary shares - - Retained earnings 56,007 53,931 Accumulated other comprehensive (loss) -1,868 -1,868 No Change Total shareholders' equity 54,139 52,063 Total liabilities and stockholders' equity $104,076 $99,782

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