Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statement and balance sheet of Seagate Technology for fiscal 2015 SEAGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019 ($ millions) Revenue $10,390 Cost of revenue 7,458 Product development 991 Marketing and administrative 453 Amortization of intangibles 23 Restructuring and other, net (22) Total operating expenses 8,903 Income from operations 1,487 Interest income 84 Interest expense 224 Other, net income 25 Other expense, net 115 Income before income taxes 1,372 (Benefit) provision for income taxes (640) Net income $ 2,012 SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 (5 millions) Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets $2,220 989 970 184 $2,220 989 970 184 4,363 1,869 1,237 111 1.114 191 $8,885 June 40, 4V12 1911 VIIS) Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total assets Current liabilities Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Total current liabilities Long-term accrued warranty Long-term accrued income taxes. Other noncurrent liabilities Long-term debt, less current portion Total liabilities Shareholders' equity Ordinary shares-- par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1.354,218,154 shares issued and outstanding, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total shareholders' equity Total liabilities and shareholders' equity $1,420 169 91 552 2,232 104 4 130 4,253 6,723 0 6,545 (34) (4,349) 2,162 $8,885 Forecast Seagate Technology's 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise Revenue growth 59 Cost of revenue 71 84 Product development 954 Marketing and administrative Restructuring and other net 50 Income tax expense pretax income) 219 Forecast no change in the following income statement accounts: Amortization of intangibles, interest income, Interest expense, and other net income Round all answers to the nearest whole number, . Do not use negative signs with any of your answers in the income statement SEAGATE TECHNOLOGY PLC Consolidated Statement of Income June 2020 5 10:910 7,633 1,016 40 21 (5 millions) For Year Ended Fever Cosio venue Product development Marketing and administrative Aromation of intangibles Hestructuring and other net Total operating expenses Income from operation It income inst expense Othernet Other expense.net Come before incontre es for income O 2372 22:4 -25 115 1423 299 1,124 UMTSOM Forecast Seagate Technology's 2020 balance sheet using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated Accounts receivable, net riventories 9. Other current assets 1.89 Deferred income taxes 10.79 Other assets.net 18 Accounts payable 13.7 Accrued employee compensation 1 Accrued warranty 0.99 Accrued expense 5 Long-term accred Warranty 1.0 Other noncurrent abilities 1.39 Forecast no change in the following balance sheet accounts: Goodwill, Long-term accrued income taxes, Long-term debt less current portion Ordinary share and Accumulated comprehensive loss Assume that in 2020, CAPEX will be 5.8% of revenue and depreciation expense will be 5.4% of Property, equipment and leasehold improvements, gross at the start of the year 59,835 million Assume that in 2020, the company awards 599 million of stock based compensation which increases Additional paid.in capital by the same amount. Assume that the company roun includes this form of compensation in operating expenses each year The company has a dividend payout ratio of 35.47 of net income Round all answers to the nearest whole number. Use a negative sign for your Accumulated other comprehensive loss and Accumulated deficit answers. SEAGATE TECHNOLOGY PLC Forecasted Balance Sheet June 2020 monsi Centets Cand cash equivalent 5 ON 1.036 Irene 1015 195 1,015 196 0 X 1,913 x 1,237 4 X $ 0 X $ 1,495 175 98 Inventories Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total assets Current liabilities Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Total current liabilities Long-term accrued warranty Long-term accrued income taxes Other noncurrent liabilities Long-term debt, less current portion Total liabilities Shareholders' equity Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total shareholders' equity Total liabilities and shareholders' equity 578 2,346 11 X 0X 142 4,253 0 X 0 6,545 X (34) 0 X 0 X $ 0 X Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet Following are the income statement and balance sheet of Seagate Technology for fiscal 2015 SEAGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019 ($ millions) Revenue $10,390 Cost of revenue 7,458 Product development 991 Marketing and administrative 453 Amortization of intangibles 23 Restructuring and other, net (22) Total operating expenses 8,903 Income from operations 1,487 Interest income 84 Interest expense 224 Other, net income 25 Other expense, net 115 Income before income taxes 1,372 (Benefit) provision for income taxes (640) Net income $ 2,012 SEAGATE TECHNOLOGY PLC Consolidated Balance Sheet June 28, 2019 (5 millions) Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets $2,220 989 970 184 $2,220 989 970 184 4,363 1,869 1,237 111 1.114 191 $8,885 June 40, 4V12 1911 VIIS) Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total assets Current liabilities Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Total current liabilities Long-term accrued warranty Long-term accrued income taxes. Other noncurrent liabilities Long-term debt, less current portion Total liabilities Shareholders' equity Ordinary shares-- par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1.354,218,154 shares issued and outstanding, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total shareholders' equity Total liabilities and shareholders' equity $1,420 169 91 552 2,232 104 4 130 4,253 6,723 0 6,545 (34) (4,349) 2,162 $8,885 Forecast Seagate Technology's 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise Revenue growth 59 Cost of revenue 71 84 Product development 954 Marketing and administrative Restructuring and other net 50 Income tax expense pretax income) 219 Forecast no change in the following income statement accounts: Amortization of intangibles, interest income, Interest expense, and other net income Round all answers to the nearest whole number, . Do not use negative signs with any of your answers in the income statement SEAGATE TECHNOLOGY PLC Consolidated Statement of Income June 2020 5 10:910 7,633 1,016 40 21 (5 millions) For Year Ended Fever Cosio venue Product development Marketing and administrative Aromation of intangibles Hestructuring and other net Total operating expenses Income from operation It income inst expense Othernet Other expense.net Come before incontre es for income O 2372 22:4 -25 115 1423 299 1,124 UMTSOM Forecast Seagate Technology's 2020 balance sheet using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated Accounts receivable, net riventories 9. Other current assets 1.89 Deferred income taxes 10.79 Other assets.net 18 Accounts payable 13.7 Accrued employee compensation 1 Accrued warranty 0.99 Accrued expense 5 Long-term accred Warranty 1.0 Other noncurrent abilities 1.39 Forecast no change in the following balance sheet accounts: Goodwill, Long-term accrued income taxes, Long-term debt less current portion Ordinary share and Accumulated comprehensive loss Assume that in 2020, CAPEX will be 5.8% of revenue and depreciation expense will be 5.4% of Property, equipment and leasehold improvements, gross at the start of the year 59,835 million Assume that in 2020, the company awards 599 million of stock based compensation which increases Additional paid.in capital by the same amount. Assume that the company roun includes this form of compensation in operating expenses each year The company has a dividend payout ratio of 35.47 of net income Round all answers to the nearest whole number. Use a negative sign for your Accumulated other comprehensive loss and Accumulated deficit answers. SEAGATE TECHNOLOGY PLC Forecasted Balance Sheet June 2020 monsi Centets Cand cash equivalent 5 ON 1.036 Irene 1015 195 1,015 196 0 X 1,913 x 1,237 4 X $ 0 X $ 1,495 175 98 Inventories Other current assets Total current assets Property, equipment and leasehold improvements, net Goodwill Other intangible assets, net Deferred income taxes Other assets, net Total assets Current liabilities Accounts payable Accrued employee compensation Accrued warranty Accrued expenses Total current liabilities Long-term accrued warranty Long-term accrued income taxes Other noncurrent liabilities Long-term debt, less current portion Total liabilities Shareholders' equity Ordinary shares- par value $0.0001, 2.6 billion shares authorized, 1,340,697,595 and 1,354,218,154 shares issued and outstanding, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total shareholders' equity Total liabilities and shareholders' equity 578 2,346 11 X 0X 142 4,253 0 X 0 6,545 X (34) 0 X 0 X $ 0 X