ABC company is a constant growth firm financed 100% with equity. What would a sample Balance...

ABC company is a constant growth firm financed 100% with equity. What would a sample Balance Sheet and Income Statement look like for this company?

Expert Solution

The sample Balance Sheet and Income statement of ABC company would look like :

Income Statement:
	2016	2015	Comments:
Sales revenue	23000	20000	15% growth
Less: COGS	13800	12000
GP	9200	8000
Less: Operating Expenses	5200	5000
Net Income	4000	3000	33% growth
Previous RE	13000	12000
Less: Dividend paid	-2400	-2000
Closing RE	14600	13000	12.3% growth


Balance Sheet:
Assets	2016	2015
Current Assets	7000	5000
Net Fixed Assets	30000	24000	25% growth
Total Assets	37000	29000

Liabilities and Share Equity:	2016	2015
Current Liabilities	3500	2800
Shareholder's Equity:
common shares	18900	13200	100% equity capital
Retained Earnings	14600	13000
Shareholder's Equity:	33500	26200	27.86% growth
Total Liabilities and Share Equity	37000	29000

jeff jeffy answered 1 year ago

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