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Refine Assumptions for Dividend and Retained Earnings Forecast - Q4 Provided below is FY2016 information for Medtronic PLC.

Medtronic plc
Consolidated Statement of Income
($ millions)		Apr. 29, 2016
Net sales		$29,610
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		6,068
Interest expense, net		955
Income from operations before income taxes		5,113
Provision for income taxes		971
Net income		$4,142

Medtronic plc
Consolidated Balance Sheet
($ millions)		Apr. 29, 2016	Apr. 24, 2015
Current assets
Cash and cash equivalents		$3,098	$5,065
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		23,822	31,066
Property, plant, and equipment, net		5,063	4,921
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		$100,226	$107,129
Current liabilities
Short-term borrowing		$1,215	$2,656
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		7,387	9,395
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		47,941	53,677
Shareholders' equity
Ordinary shares		-	-
Retained earnings		54,153	54,636
Accumulated other comprehensive (loss)/income		(1,868)	(1,184)
Total shareholders' equity		52,285	53,452
Total liabilities and shareholders' equity		$100,226	$107,129

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

Forecasted net income	$5,033 million
Dividends to shareholders' in FY2016	2,205 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	$1.75	$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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