Solution to ICAN May 2015 Case Study- Part1/2 RE-UPLODED

To: The Finance Director, Ice Age Manufacturing Limited
A (draft) Report on the Value Chain and Financial Position of Ice Age Manufacturing Limited
Prepared by: Dawodu & Dawodu (Chartered Accountants)
Date: 24th May, 2015
Disclaimer
The report has been produced for the sole use of Ice Age Manufacturing Limited (IAML). No liability is accepted except to the Directors of Ice Age Manufacturing Limited.
1.      Value Chain of  Ice Age Manufacturing Limited
a.      Wider context
IAML is an un-listed company. Therefore, it is not subject to pressure from the stock market to increase its profits. There is also a lower amount of pressure on it to pay dividend from its earnings.
b.      Inbound logistics
i.                    Suppliers

IAML suppliers are on very good terms with it and are willing to continue their trading relationship. This makes it less likely that IAML will experience a shortage of raw materials. These good relationships may be a possible reason for the absolute increase of IAML’s gross profits from N2.739m in 2013 to N3.27m in 2014.


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