Gonzalez Energy Partners: A Hypothetical Teaching Case Study of Financial Statement Analysis and Firm Valuation

Abstract

In the process of earning AACSB-International accreditation in 2017, the College of Business Administration at Texas A&M University-Kingsville demonstrated curriculum quality at the graduate level is assessed through student completion of hypothetical cases. The Gonzalez Energy Partners (GEP) case has been used in the Financial Management and Sustainability (FINC 5347) to assess graduate student written communication skills and critical thinking skills. This case represents a detailed analysis of the hypothetical financial aspects of a mid-sized company in the energy industry. In the process of evaluating the financial strengths and weaknesses of GEP, students will be engaged in financial statement analysis, capital budgeting, financial security valuation, and time value of money techniques. The case is applicable at either advanced undergraduate or graduate levels. The rough layout of this case follows that of “Trak Software, Inc.” which is an integrative case in Gitman and Zutter (2012, pp. 215-218). The textbook used in the author’s class is Financial Management: Theory and Practice (2017) by Brigham and Ehrhardt. Adjusting the industry, personnel, cash amounts, questions, and multiple other factors, frequently on an individual student basis, helps minimize the opportunities of MBA students to use online resources to answer the case.