Business

SUMMATIVE ASSESSMENT

MSc Int’l Marketing

Finance for Marketers

January 2014

Students are required to complete all three (3) case assignments. Case 1 is carrying 40 points, Case 2 & Case 3 each carrying 30 points.

All assignments should at least be a total of 2500 words (not including data in tables).

Case 1 Sam’s Cosmetics plc (40 points)

Sam’s Cosmetics plc is a niche player in the specialised cosmetics market. Following the economic downturn in the luxurius cosmetics, they have struggled to maintain, let alone grow, sales volumes.

Sam’s Cosmetics has recently applied to its bank for an increase in their overdraft facility from £1,500,000 to £2,500,000. The bank manager has provided you, the banking analyst, with Sam’s Cosmetics’s statement of financial position and income statement to analyse and assess. These are set out below.

Income Statement for the year ended 31 December:

| | 2012 | 2011 |

| | £000 | £000 |

Revenue | | 26,387 | 28,853 |

Cost of goods sold | | (22,484) | (24,439) |

Gross profit | | 3,903 | 4,414 |

Factory overheads | | (1,631) | (1,570) |

Distribution costs | | (354) | (398) |

Sales and marketing costs | | (517) | (495) |

Administrative costs | | (623) | (596) |

Profit before interest and taxation | | 778 | 1,355 |

Interest charges | | (17) | (22) |

Profit before taxation | | 761 | 1,333 |

Taxation | | (235) | (407) |

Profit / (Loss) after taxation | | 526 | 926 |

Dividends declared | | (425) | (750) |

Retained profit | | 101 | 176 |

Statement of Financial Position as at 31 December 2012:

2012 2011

£000 £000

Non-current assets

Land and buildings 4,953 3,158

Current Assets...