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Refine Assumptions for Dividend and Retained Earnings Forecast Provided below is FY2016 information for Medtronic PLC.

Medtronic plc
Consolidated Statement of Income
($ millions)		Apr. 29, 2016
Net sales		$28,389
Costs and expenses
Cost of products sold		9,142
Research and development expenses		2,224
Selling, general, and administrative expense		9,469
Special charges (gains), net		70
Restructuring charge, net		290
Certain litigation charges, net		26
Acquisition-related items		283
Amortization of intangiable assets		1,931
Other expense, net		107
Operating profit		4,847
Interest expense, net		955
Income from operations before income taxes		3,892
Provision for income taxes		739
Net income		$3,153

Medtronic plc
Consolidated Balance Sheet
($ millions)		Apr. 29, 2016	Apr. 24, 2015
Current assets
Cash and cash equivalents		$2,777	$4,744
Investments		9,758	14,637
Accounts receivable		5,562	5,112
Inventories		3,473	3,463
Tax assets		697	1,335
Prepaid expenses and other current assets		1,234	1,454
Total current assets		23,501	30,745
Property, plant, and equipment, net		4,742	4,600
Goodwill		41,500	40,530
Other intangiable assets, net		26,899	28,101
Long-term tax assets		1,383	774
Other assets		1,559	1,737
Total assets		$99,584	$106,487
Current liabilities
Short-term borrowing		$894	$2,335
Accounts payable		1,709	1,610
Accrued compensation		1,712	1,611
Accrued income taxes		566	935
Deferred tax liabilities		-	119
Other accrued expenses		2,185	2,464
Total current liabilities		7,066	9,074
Long-term debt		30,247	33,752
Long-term accrued compensation		1,759	1,535
Long-term accrued income taxes		2,903	2,476
Long-term deferred tax liabilities		3,729	4,700
Other long-term liabilities		1,916	1,819
Total liabilities		47,620	53,356
Shareholders' equity
Ordinary shares		-	-
Retained earnings		53,832	54,315
Accumulated other comprehensive (loss)/income		(1,868)	(1,184)
Total shareholders' equity		51,964	53,131
Total liabilities and shareholders' equity		$99,584	$106,487

a. Use the financial statements along with the additional information below to forecast retained earnings for FY2017.

Forecasted net income	$4,862 million
Dividends to shareholders' in FY2016	2,106 million

Forecasted retained earnings $Answer million b. Suppose the MD&A section of the Form 10-K and additional guidance from the company reveals the following additional information.

	2017 Est.	2016 Actual	2015 Actual
Dividends per share	$1.71	$1.52	$1.22

At FY2016 year-end (April 29, 2016), the company had approximately 1,400 million shares issued and outstanding. Use this information to refine your forecast of retained earnings for FY2017. Forecasted retained earnings $Answer million

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