<PAGE> PAGE 1
000 B000000 12/31/96
000 C000000 0000059146
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 LEXINGTON GROWTH AND INCOME FUND, INC.
001 B000000 811-0865
001 C000000 2018457300
002 A000000 PARK 80 WEST PLAZA TWO
002 B000000 SADDLE BROOK
002 C000000 NJ
002 D010000 07663
002 D020000 9990
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 LEXINGTON MANAGEMENT CORPORATION
008 B000001 A
008 C000001 801-8281
008 D010001 SADDLE BROOK
008 D020001 NJ
008 D030001 07663
008 D040001 9990
010 A000001 LEXINGTON MANAGEMENT CORPORATION
010 B000001 8281
010 C010001 SADDLE BROOK
010 C020001 NJ
010 C030001 07663
011 A000001 LEXINGTON FUNDS DISTRIBUTOR, INC.
011 B000001 8-24850
011 C010001 SADDLE BROOK
011 C020001 NJ
011 C030001 07663
011 C040001 9990
<PAGE> PAGE 2
012 A000001 STATE STREET BANK & TRUST COMPANY C/O NFDS
012 B000001 84-1078
012 C010001 KANSAS CITY
012 C020001 MO
012 C030001 64105
013 A000001 KPMG PEAT MARWICK LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10154
014 A000001 LEXINGTON FUNDS DISTRIBUTOR, INC.
014 B000001 8-24850
015 A000001 CHASE MANHATTAN BANK N.A.
015 B000001 C
015 C010001 BROOKLYN
015 C020001 NY
015 C030001 11245
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 18
019 C000000 :LEXINGTON
020 A000001 WERTHEIM & CO.
020 B000001 13-2697272
020 C000001 65
020 A000002 BEAR STEARNS
020 B000002 13-3299429
020 C000002 53
020 A000003 AUTRANET
020 B000003 13-2961507
020 C000003 28
020 A000004 GOLDMAN SACHS
020 B000004 13-5108880
020 C000004 24
020 A000005 CS FIRST BOSTON
020 C000005 23
020 A000006 BERNSTEIN SANFORD
020 B000006 13-2625874
020 C000006 20
020 A000007 SMITH BARNEY
020 B000007 13-1912900
020 C000007 20
020 A000008 PAINE WEBBER
020 B000008 13-2638166
020 C000008 20
020 A000009 JEFFERIES INC.
020 B000009 95-2622900
020 C000009 18
020 A000010 MORGAN STANLEY
020 B000010 13-2655998
020 C000010 18
021 000000 429
<PAGE> PAGE 3
022 A000001 MERRILL LYNCH, PIERCE FENNER & SMITH, INC.
022 B000001 13-5674085
022 C000001 465415
022 D000001 16876
022 A000002 LEHMAN BROTHERS
022 C000002 302605
022 D000002 7948
022 A000003 SHEARSON LEHMAN
022 B000003 13-2518466
022 C000003 41646
022 D000003 4206
022 A000004 MORGAN STANLEY
022 B000004 13-2655998
022 C000004 4839
022 D000004 5220
022 A000005 PRUDENTIAL BACHE
022 C000005 4358
022 D000005 3175
022 A000006 BEAR STEARNS
022 B000006 13-3299429
022 C000006 1196
022 D000006 3722
022 A000007 DONALDSON LUFKIN & JENRETTE
022 B000007 13-2741729
022 C000007 275
022 D000007 3986
022 A000008 GOLDMAN SACHS
022 B000008 13-5108880
022 C000008 3509
022 D000008 0
022 A000009 PAINE WEBBER JACKSON
022 C000009 0
022 D000009 3423
022 A000010 CHASE MANHATTAN BANK
022 C000010 0
022 D000010 3552
023 C000000 830920
023 D000000 52660
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
<PAGE> PAGE 4
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 1528
028 A020000 0
028 A030000 0
028 A040000 4444
028 B010000 16842
028 B020000 0
028 B030000 0
028 B040000 2621
028 C010000 15911
028 C020000 280
028 C030000 0
028 C040000 2239
028 D010000 9461
028 D020000 0
028 D030000 0
028 D040000 2303
028 E010000 15939
028 E020000 0
028 E030000 0
028 E040000 2832
028 F010000 2294
028 F020000 10569
028 F030000 0
028 F040000 18812
028 G010000 61975
028 G020000 10849
028 G030000 0
028 G040000 33251
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
<PAGE> PAGE 5
042 A000000 99
042 B000000 1
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 225
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100
048 A020000 0.750
048 B010000 50
048 B020000 0.600
048 C010000 100
048 C020000 0.500
048 D010000 0
048 D020000 0.400
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
<PAGE> PAGE 6
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 Y
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
<PAGE> PAGE 7
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 N
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 178329
071 B000000 161372
071 C000000 159583
071 D000000 101
072 A000000 12
072 B000000 367
072 C000000 2201
072 D000000 0
072 E000000 0
072 F000000 1119
072 G000000 0
072 H000000 231
072 I000000 37
072 J000000 22
072 K000000 0
072 L000000 64
072 M000000 17
072 N000000 37
072 O000000 0
072 P000000 0
072 Q000000 0
<PAGE> PAGE 8
072 R000000 24
072 S000000 13
072 T000000 225
072 U000000 0
072 V000000 0
072 W000000 66
072 X000000 1855
072 Y000000 0
072 Z000000 713
072AA000000 20160
072BB000000 5306
072CC010000 33692
072CC020000 0
072DD010000 1198
072DD020000 0
072EE000000 11925
073 A010000 0.1300
073 A020000 0.0000
073 B000000 1.1700
073 C000000 0.0000
074 A000000 106
074 B000000 0
074 C000000 8456
074 D000000 0
074 E000000 0
074 F000000 192971
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 468
074 M000000 0
074 N000000 202001
074 O000000 0
074 P000000 96
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 1596
074 S000000 0
074 T000000 200309
074 U010000 10790
074 U020000 0
074 V010000 18.56
074 V020000 0.00
074 W000000 0.0000
074 X000000 7045
074 Y000000 0
075 A000000 0
<PAGE> PAGE 9
075 B000000 164704
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 FEDERAL INSURANCE COMPANY
080 C000000 6925
081 A000000 Y
081 B000000 16
082 A000000 Y
082 B000000 25
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE PETER CORNIOTES
TITLE ASSISTANT SECRETARY
KPMG Peat Marwick LLP
345 Park Avenue Telephone 212 758 9700 Telefax 212 758 9819
New York, NY 10154 Telex 428038
The Shareholders and Board of Directors of
The Lexington Growth and Income Fund, Inc.:
In planning and performing our audit of the financial statements of The
Lexington Growth and Income Fund, Inc. for the year ended December 31,
1996, we considered its internal control structure, including procedures
for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to
provide assurance on the internal control structure.
The management of The Lexington Growth and Income Fund, Inc. is
responsible for establishing and maintaining an internal control
structure. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management
with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and that transactions
are executed in accordance with management's authorization and recorded
properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure that
might be material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness is a
condition in which the design or operation of the specific internal
control structure elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as
defined above as of December 31, 1996.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
/s/ KPMG Peat Marwick LLP
February 14, 1997
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
The Schedule contains summary financial information extracted from year-end
audited financial statements dated December 31, 1996 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 167,735,137
<INVESTMENTS-AT-VALUE> 201,427,241
<RECEIVABLES> 468,183
<ASSETS-OTHER> 106,257
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 202,001,681
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,692,613
<TOTAL-LIABILITIES> 1,692,613
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 163,534,133
<SHARES-COMMON-STOCK> 10,790,208
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,082,831
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 33,692,104
<NET-ASSETS> 200,309,068
<DIVIDEND-INCOME> 2,208,019
<INTEREST-INCOME> 367,074
<OTHER-INCOME> (6,755)
<EXPENSES-NET> 1,855,411
<NET-INVESTMENT-INCOME> 712,927
<REALIZED-GAINS-CURRENT> 14,853,714
<APPREC-INCREASE-CURRENT> 22,564,960
<NET-CHANGE-FROM-OPS> 38,131,601
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,197,624
<DISTRIBUTIONS-OF-GAINS> 11,924,849
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,754,824
<NUMBER-OF-SHARES-REDEEMED> 2,423,985
<SHARES-REINVESTED> 615,141
<NET-CHANGE-IN-ASSETS> 36,399,400
<ACCUMULATED-NII-PRIOR> 695,588
<ACCUMULATED-GAINS-PRIOR> 2,406
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,118,691
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,855,411
<AVERAGE-NET-ASSETS> 164,704,264
<PER-SHARE-NAV-BEGIN> 15.71
<PER-SHARE-NII> .07
<PER-SHARE-GAIN-APPREC> 4.08
<PER-SHARE-DIVIDEND> (.13)
<PER-SHARE-DISTRIBUTIONS> (1.17)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.56
<EXPENSE-RATIO> 1.13
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
