Abstract

This case concerns a start-up winery, purchased out of bankruptcy. The new owners are trying to bring the vineyard back to profitability. Students are asked to prepare two years (1994-95) of historical financial statements given the raw accounting events, as well as to develop two years (1996-97) of proforma financial statements. The decision context is a possible initial public offering.

 

Teaching
If the instructor desires to use the case only as a financial statement preparation exercise, only questions one should be assigned. Question two focuses on proforma statement development and firm value. The case is sufficiently lengthy that two 1.5 hours classes will be needed to cover both question one and two.

Case number:
A01-03-0004
Subject:
Accounting and Control
Year:
Setting:
US/California
Length:
6 pages
Source:
Library, General Experience