Case Study: Cool Waters Year in Review 2008
Abstract
The case study: Cool Waters Year in Review 2008 is a comprehensive case study of an actual firm that is currently operating in Trinidad and Tobago. The Cool Waters case touches aspects of both financial and managerial accounting at an advanced level, as well as decision-making at an advanced managerial level. Although it is predominantly fictional, it is based on a number of actual events that took place within the local firm. The case material was prepared for students who are currently in Final Year BSc Accounting Major and Accounting Special, and is also appropriate for Level II ACCA students. The objectives of this case would be to test the ability of students to recognise and understand the relationship between a parent company and its subsidiary’s assets, the advantages and disadvantages of leasing versus buying capital assets, break even analysis for a multi-product firm, capital allowances and choice of investment for the future changes in market conditions. Further, it tests the students’ ability to think outside the box, by bringing in several conditions and considerations that are implicitly mentioned in the case material. This case study is ideal for students to be done in groups of three to five persons. It is sufficient enough for students to complete within a two-week period, given additional course requirements, and semester workload. Ideally, the case should be assessed out of 45 marks, with 40 marks going to case analysis and 5 marks going towards presentation.
Keywords: Parent-Subsidiary, Buy versus Lease, Break Even Multi-product firm, Capital Allowance. CASE STUDY: COOL WATERS YEAR IN REVIEW 2008
Introduction
Cool Waters Products Limited, the largest and most modern water plant in the Caribbean was established in 1999. From the initial stage of blowing bottles to marketing the product aggressively both locally and regionally, Cool Waters Products Limited continues to grow as each year goes by. Starting with 12 employees,
The case study: Cool Waters Year in Review 2008 is a comprehensive case study of an actual firm that is currently operating in Trinidad and Tobago. The Cool Waters case touches aspects of both financial and managerial accounting at an advanced level, as well as decision-making at an advanced managerial level. Although it is predominantly fictional, it is based on a number of actual events that took place within the local firm. The case material was prepared for students who are currently in Final Year BSc Accounting Major and Accounting Special, and is also appropriate for Level II ACCA students. The objectives of this case would be to test the ability of students to recognise and understand the relationship between a parent company and its subsidiary’s assets, the advantages and disadvantages of leasing versus buying capital assets, break even analysis for a multi-product firm, capital allowances and choice of investment for the future changes in market conditions. Further, it tests the students’ ability to think outside the box, by bringing in several conditions and considerations that are implicitly mentioned in the case material. This case study is ideal for students to be done in groups of three to five persons. It is sufficient enough for students to complete within a two-week period, given additional course requirements, and semester workload. Ideally, the case should be assessed out of 45 marks, with 40 marks going to case analysis and 5 marks going towards presentation.
Keywords: Parent-Subsidiary, Buy versus Lease, Break Even Multi-product firm, Capital Allowance. CASE STUDY: COOL WATERS YEAR IN REVIEW 2008
Introduction
Cool Waters Products Limited, the largest and most modern water plant in the Caribbean was established in 1999. From the initial stage of blowing bottles to marketing the product aggressively both locally and regionally, Cool Waters Products Limited continues to grow as each year goes by. Starting with 12 employees,