Accenture is a very acquisitive company. As they grow their assets through acquisitions, they need to...

Transcribed Image Text:

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 Accounts Receivable Cash COGS Common Stock Depreciation Dividends Interest Income Long-Term Debt $ 12,307 Net PP&E 12,227 Other Current Assets $ 4,167 2,105 9,050 43,380 Other Expenses Other Current Liabilities 5,702 10,521 7,142 Other Long-Term Liabilities 4,424 1,401 Other Non-Current Assets 23,696 2,827 Retained Earnings 19,316 329 Sales/Revenue 64,112 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. ii. iii. Interest Income does not vary with sales, it varies with cash For the 2024 tax rate, use the same average tax rate from 2023 Dividends will be the same precent of net income as 2023 iv. Everything else on the income statement will vary with sales 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 Accounts Receivable Cash COGS Common Stock Depreciation Dividends Interest Income Long-Term Debt $ 12,307 Net PP&E 12,227 Other Current Assets $ 4,167 2,105 9,050 43,380 Other Expenses Other Current Liabilities 5,702 10,521 7,142 Other Long-Term Liabilities 4,424 1,401 Other Non-Current Assets 23,696 2,827 Retained Earnings 19,316 329 Sales/Revenue 64,112 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. ii. iii. Interest Income does not vary with sales, it varies with cash For the 2024 tax rate, use the same average tax rate from 2023 Dividends will be the same precent of net income as 2023 iv. Everything else on the income statement will vary with sales

Answer rating: 100% (QA)

To prepare a financial plan for Accenture for 2024 we will follow the given instructions and use the provided financial statement accounts for 2023 Lets begin with Part 1 PART 1 1 Constructing Accentu... View the full answer