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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 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, including only one salesman, the
accomplishment of the company has been tremendous. The company products include 500
ml pouches, 650 ml regular, 650 ml Sports, 1.5 Litres, a new and improved 1 Gallon
package, 5 Litres as well as 5 Gallon Bottles that are used for our Water Coolers that can
be bought or rented. Last but not least, Cool Waters Products Limited strives on giving the
best quality water along with the best service to you our customers. Be assured that our
water is tested on a weekly basis from CARIRI (Caribbean Industrial Research Institute)
