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
10,521
Common Stock
7,142 Other Long-Term Liabilities
4,424
Depreciation
1,401 Other Non-Current Assets
23,696
Dividends
2,827 Retained Earnings
19,316
Interest Income
329 Sales/Revenue
64,112
Long-Term Debt
2,354 Taxes
2,136
PART 1:
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 precent of net income as 2023
iv.
Everything else on the income statement will vary with sales