Following are the income statement and balance sheet of Seagate Technology for fiscal 2019. 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 ($ millions)
Current assets
Cash and cash equivalents $2,220
Accounts receivable, net 989
Inventories 970
Other current assets 184
Total current assets 4,363
Property, equipment and leasehold improvements, net 1,869
Goodwill 1,237
Other intangible assets, net 111
Deferred income taxes 1,114
Other assets, net 191
Total assets $8,885
Current liabilities
Accounts payable $1,420
Accrued employee compensation 169
Accrued warranty 91
Accrued expenses 552
Total current liabilities 2,232
Long-term accrued warranty 104
Long-term accrued income taxes . 4
Other noncurrent liabilities 130
Long-term debt, less current portion 4,253
Total liabilities 6,723
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 0
Additional paid-in capital 6,545
Accumulated other comprehensive loss (34)
Accumulated deficit (4,349)
Total shareholders' equity 2,162
Total liabilities and shareholders' equity $8,885
Forecast Seagate Technology’s 2020 income statement using the following forecast assumptions, which are expressed as a percentage of revenue unless otherwise indicated.
Revenue growth 5%
Cost of revenue 71.8%
Product development 9.5%
Marketing and administrative 4.4%
Restructuring and other, net $0
Income tax expense (% pretax income) 21%
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.