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Washington Enterprises, Inc.: Pro Forma ...

Briceno, Frank, Si...

Case

Washington Enterprises, Inc.: Pro Forma Financial Statements

Briceno, Frank; Simko, Paul J.

C-2495 | Published February 21, 2025 | 7 pages Case

Collection: Darden School of Business

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A newly hired analyst at a boutique investment bank, Jenny Smith, is tasked with preparing pro forma financial statements for Washington Enterprises, Inc. (WEI). Smith must construct these pro forma statements based on a set of standard assumptions provided within the case. This fictionalized case introduces students to the mechanics of forecasting a complete set of financial statements, allowing for a practical application of accounting that leads to corporate valuation. The case also provides common-size financial statements for WEI, along with other key select financial ratios, enabling discussion of other financial analysis topics. It is best positioned in either an undergraduate- or graduate-level financial statement analysis course, and it can be used in the introductory phase of a finance-based valuation course.