Accenture is a very acquisitive company. As they grow their assets through acquisitions, they need to make sure they continue to have financing for these important strategic moves. Let's help Accenture with their financial planning! Prepare a financial plan for Accenture for 2024.
These are the 2023 financial statement accounts you will need:
In millions of dollars
Accounts Payable: $12,307
Net PP&E: $4,167
Accounts Receivable: $12,227
Other Current Assets: $2,105
Cash: $9,050
Other Current Liabilities: $5,702
COGS: $43,380
Other Expenses: $7,142
Other Long-Term Liabilities: $10,521
Common Stock: $4,424
Depreciation: $1,401
Dividends: $2,827
Retained Earnings: $19,316
Interest Income: $329
Sales/Revenue: $64,112
Long-Term Debt: $2,354
Taxes: $2,136
PART 1:
Construct Accenture's 2023 income statement and balance sheet using the accounts above and calculate the internal growth rate and sustainable growth rate for Accenture. Explain to a less financially aware investor what the calculated internal growth rate and sustainable growth rate mean.
2. Now construct pro formas for 2024. Accenture is planning for an increase in sales of 3.3% in 2024.
Some special instructions for your projections:
i. Interest Income does not vary with sales, it varies with cash.
ii. For the 2024 tax rate, use the same average tax rate from 2023.
iii. Dividends will be the same percent of net income as 2023.
iv. Everything else on the income statement will vary with sales.