Scottish Qualifications Authority J5TC 47 Business with Accounting PDF

GU1 Case Study Business with Accounting: Graded Unit 1 — J5TC 47 (Examination-based) SCQF level 7 Publication code: J5TC 47/ASP001/AQ First Edition: June 2021 Third Edition: March 2023 The information in this publication may be reproduced to support SQA qualifications. This publ...

GU1 Case Study Business with Accounting: Graded Unit 1 — J5TC 47 (Examination-based) SCQF level 7 Publication code: J5TC 47/ASP001/AQ First Edition: June 2021 Third Edition: March 2023 The information in this publication may be reproduced to support SQA qualifications. This publication must not be reproduced for commercial or trade purposes. This material is for use by teaching staff only. Published by the Scottish Qualifications Authority The Optima Building, 58 Robertson Street, Glasgow, G2 8DQ Lowden, 24 Wester Shawfair, Dalkeith, Midlothian, EH22 1FD www.sqa.org.uk  Scottish Qualifications Authority 2023 Assessment Pre-requisites before writing GU1 Closed book exam It is recommended that the learner should have completed, or be in the process of completing, the following units, which relate to the specific aims of the group award, prior to undertaking this graded unit: Unit code SCQF level Title J5FN 47 7 Accounting for Business: An Introduction J5FK 47 7 Business Fundamentals with Emerging Technologies J461 47 7 Economic Issues: An Introduction J4DK 47 7 Managing People and Organisations HP6N 47 7 Marketing: An Introduction The following information indicates how the assessment task is to be marked and also shows the evidence which should be retained for external verification. Examination The examination will be marked out of 100. Assessors will aggregate the marks achieved by the learner to arrive at an overall mark for the examination. Assessors will then assign a grade to the learner for this graded unit based on the following grade boundaries: ♦ A = 70%–100% ♦ B = 60%–69% ♦ C = 50%–59% Suggested evidence to be retained All learner evidence to be retained Scottish Qualifications Authority 2 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 The examination is closed-book. The examination should be unseen and the assessment should be conducted in controlled and supervised conditions. At all times, the security, integrity and confidentiality of the examination must be ensured. The assessment is an examination lasting three hours. The examination will consist of a case study of an organisation and questions relating to the case study. The case study should be given to learners up to three weeks prior to the date of the examination. Learners may not bring their copy of the case study to the examination with them. A fresh copy of the case study must be given to learners at the time of the examination. Instructions for designing the assessment task This graded unit will be assessed by the use of a closed-book examination. The examination should provide the learner with the opportunity to produce evidence that demonstrates they have met the aims of this graded unit. The assessment is an examination lasting three hours. The examination should be designed to assess the learner’s critical knowledge and understanding of the topics relating to the specific aims which this graded unit is designed to cover. The examination will be marked out of 100. Only whole marks should be used. The questions in the examination should be based on a case study of an organisation. This may be a real or fictitious organisation and may be part of the private, public or third sector. The case study will consist of an account of some aspects of the organisation’s activities, including the key topics outlined in the following table. When writing the case study sufficient information should be introduced to ensure that at least two sets of questions on key topics could be asked. This case study should be between 1,800–1,900 words long. In addition a minimum of two pieces of supplementary information should be included, at least one of which should be numerically-based such as statistical information or accounting information and at least one piece of supplementary information should provide additional relevant background information on the organisation. The format of the examination should be designed to meet the following requirements. 1 The examination paper should be in two sections. Scottish Qualifications Authority 3 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023  ♦ Section 1 should be based on the learner’s ability to integrate knowledge and understanding and use problem solving techniques within the context of the given case study. This Section will consist of two compulsory questions. ♦ Section 2 will consist of five questions. The learner must answer three from five questions. 2 Questions should be split into two or three parts and each part given a separate mark. Marks should be indicated on the question paper, for example Question 1 part (a) 12 marks and parts (b) 8 marks. No single part should be awarded more than 14 marks. Section 1 — both questions to be answered Key topics Level of demand % mark allocation for each key topic Integration and problem The learner will be required to: 2 compulsory solving within the context questions of the case study Use knowledge and understanding worth a total from a number of different business of 40 marks disciplines to identify, explain and analyse issues arising from a 40% prescribed business situation. Use knowledge and understanding from a number of different business disciplines to suggest and justify actions which could be taken to respond to issues arising from a prescribed business situation. Section 2 — 3 questions from 5 to be answered Key topics Level of demand % mark allocation for each key topic Scottish Qualifications Authority 4 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023  Applying financial The learner will be required to: 1 question concepts worth a total Apply knowledge and understanding of 20 marks Financial statements: to explain the importance of elements of financial information and 20% ♦ Income statement. statements provided for a prescribed ♦ Statement of financial business situation. Position. Use knowledge and understanding to Relevance of financial draw reasoned conclusions about information. relevant financial matters and the Assessing financial impact of business decisions in a position. prescribed business situation. Inventory control and its Use knowledge and understanding to impact. explain the importance of inventory in a prescribed business situation. [Preparation of financial statements is not required.] Scottish Qualifications Authority 5 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023  Key topics Level of demand % mark allocation for each key topic Applying economic The learner will be required to: 1 question concepts worth a total of Apply knowledge and understanding 20 marks Markets — demand, to identify, explain and analyse supply and elasticity. economic factors relevant to a 20% Government policy to prescribed business situation. address market failure. Use knowledge and understanding to make reasoned predictions about a prescribed business situation. Use knowledge and understanding to identify actual or potential advantages and disadvantages of actions by economic agents in a prescribed business situation. [Calculations of elasticity are not required.] Applying marketing The learner will be required to: 1 question concepts worth a total of Apply knowledge and understanding 20 marks Market research to identify, explain and analyse Marketing mix marketing factors relevant to a 20% Product mix prescribed business situation. Promotion Price Use knowledge and understanding Place to draw reasoned conclusions about Marketing mix response to marketing issues in a prescribed changing marketing business situation. conditions Use knowledge and understanding to identify actual or potential advantages and disadvantages of particular marketing activities in a prescribed business situation. Use knowledge and understanding to suggest and justify possible marketing activities in a prescribed business situation. Scottish Qualifications Authority 6 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023  Key topics Level of demand % mark allocation for each key topic Applying organisational The learner will be required to: 1 question and managerial worth a total concepts Apply knowledge and understanding of 20 marks to identify, explain and analyse Organisational goals, organisational and managerial 20% objectives and policy. factors relevant to a prescribed Internal and external business situation. environment. Use knowledge and understanding to Employee performance draw reasoned conclusions about and knowledge organisational and managerial issues management. in a prescribed business situation. How organisations are Use knowledge and understanding to managed: identify actual or potential ♦ organisation design advantages and disadvantages of ♦ models and particular organisational and frameworks, managerial aspects of a prescribed ♦ ethical practice, business situation. ♦ historical and Apply knowledge and understanding contemporary theories to suggest and justify possible of leadership, organisational and/or managerial ♦ measures of actions in a prescribed business managerial situation. effectiveness. Applying fundamental The learner will be required to: 1 question business concepts in a worth a total rapidly changing Apply knowledge and understanding of 20 marks business environment to identify and analyse rapidly changing external and internal 20% Stakeholders business environments in a Globalisation prescribed business situation. Emerging technology- based Business Models Use knowledge and understanding to Workforce Diversity assess threats and opportunities arising from rapidly changing Artificial Intelligence business environments in a Big Data prescribed business situation. Business resilience Use knowledge and understanding of current and emerging technologies to assess the potential positive and/or negative impact on business operations. Total marks for examination 100 Scottish Qualifications Authority 7 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Guidance on grading learners for a examination-based graded unit Learners who meet the minimum evidence requirements will have their achievement graded as C (competent), A (highly competent), or B (somewhere between A and C). Examples of grade related criteria for an examination-based graded unit are given in the table below: Grade A Grade C Is a seamless, coherent piece of work Is a co-ordinated piece of work or exam or exam script which consistently: script which: ♦ interprets and understands the ♦ interprets and understands the question in a way that demonstrates question in a way that enables the insight and clear understanding of learner to meet the basic criteria issues and relationships required ♦ demonstrates a comprehensive ♦ demonstrates limited analysis, analysis and evaluation of relevant evaluation, and explanation of the information question and other relevant information ♦ offers logically structured and ♦ offers uneven responses that coherently expressed responses, convey limited understanding demonstrating consistent use of although some relevant points are correct terminology made ♦ is clear and well-structured ♦ is satisfactorily structured, with throughout, with language and language and terminology used terminology used of a consistently adequate, although not always high standard in terms of level, consistent, in terms of level, accuracy, and technical content accuracy, and technical content ♦ consolidates and integrates ♦ consolidates and integrates required knowledge and skills, knowledge and skills but may lack linking concepts and ideas, and continuity and consistency and fail relating answers explicitly to the to show clear links to concepts and question ideas ♦ provides evidence of possible ♦ is likely to show only one approach alternative approaches and and limited understanding of arguments as well as understanding different interpretations of different interpretations ♦ convincingly argues and shows links ♦ argues and justifies conclusions in between discussions and an acceptable way but these conclusions, demonstrating conclusions may lack reasoned comprehensive knowledge and understanding, may not link well to understanding as well as analysis discussions, and may show limited and evaluation skills knowledge Scottish Qualifications Authority 8 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Remediation Remediation is not allowed in examination-based graded unit assessments. Re-assessment Any learner who has failed the examination or who wishes to upgrade their award must be given a re-assessment opportunity, or in exceptional circumstances, two re- assessment opportunities. This must be done using a substantially different examination. Final learner grade The final grading given must reflect the quality of the learner’s evidence at the time of the completion of the graded unit. Learners must be awarded the highest grade achieved, whether through first sitting or through any re-assessment. Scottish Qualifications Authority 9 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Assessment tasks The examination is based upon the case study of Mackie’s of Scotland which you have been able to read beforehand. The copy which accompanies this examination is the same one that you have already been issued with previously. The questions are based upon the case study material and you should make use of examples drawn from the case study to illustrate your answers. You should also make reference to concepts and ideas which you have studied in the following units in your SQA Advanced Certificate: J5FN 47 Accounting for Business: An Introduction J5FK 47 Business Fundamentals with Emerging Technologies J461 47 Economic Issues: An Introduction J4DK 47 Managing People and Organisations HP6N 47 Marketing: An Introduction Questions Topic Section Question Mark allocation Integration and problem 1 1 (a), 1 (b), 40 solving. 2 (a), 2 (b) Applying financial concepts. 2 3 (a), 3 (b) 20 Applying economic concepts. 2 4 (a), 4 (b), 4 (c) 20 Applying marketing concepts. 2 5 (a), 5 (b) 20 Applying organisational and 2 6 (a), 6 (b) 20 management concepts. Applying fundamental business 2 7 (a), 7 (b) 20 concepts. Scottish Qualifications Authority 10 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Mackie’s Of Scotland — case study © The following case study has been approved by Mackie’s of Scotland. History Mackie's Of Scotland has been farming in the North East of Scotland for four generations. The family-owned company has Maitland (Mac) Mackie as Managing Director and his sisters, Karin as Marketing Director and Kirstin as Development Director and all are entrepreneurial innovators. Doctor Maitland Mackie (1884-1975) started the business, his son diversified from dairy farming into milk retailing, and Mac Mackie’s father began making ice cream. Ice cream ‘Mackie’s of Scotland’ as it is today was born in 1986 when the business changed from traditional farming and milk retail into ice cream production. A small investment in real dairy ice cream manufacturing used cream surpluses arising from the increased demand for semi-skimmed milk. The shift to year-round ice cream consumption stimulated sales of high quality premium ice cream and Mackie’s sales reaching £2.5 million in 1993. The continued growth in sales is a major achievement as powerful competitors were already well established in the high-quality indulgence ice cream market. 1993 saw farm buildings converted into a modern ice-cream dairy capable of producing 10 million litres of ice cream each year. Mackie's only make premium quality ice cream with fresh milk and cream, the most popular product in the Mackie's range is 'Traditional', a smooth creamy ice cream with no added flavours. In 1994 the decision was taken to sell the milk retail business and concentrate on producing luxury real dairy ice cream. The years since have been busy with the development of many new high quality premium products. The ‘Highland range’ of ice cream was launched with flavours including Drambuie, Toffee Fudge and Vanilla. A state-of-the-art New Product Development Kitchen was created (see Appendix A), where innovative products with distinctive Scottish characteristics were created. Developments included Ice Cream Truffles and the launch of ‘Mackie’s with More’ ice cream dual brand range products, Walker’s Ginger Chocolate and Baxter’s Vintage Marmalade flavours. (Walker’s and Baxter’s are iconic Scottish food brands). A soft scoop ice cream for children, with sorbet products were launched in 2001, and other new products/flavours being regularly launched. The company have launched over 200 new products with limited edition seasonal flavours proving popular. Mackie’s have their own herd of over 300 Holstiens, a popular milking breed of cow who produce the fresh whole milk used to make the ice cream. Mackie’s describe the ‘dairy difference’ between this fresh dairy ingredient in comparison to other ice creams made with other fats from vegetable oil. The process from milking to ice cream can be completed in less than 24 hours. Scottish Qualifications Authority 11 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 In 2002 a family-owned Korean company contacted Mackie’s leading to creation of some ‘Mackie’s of Scotland’ branded ice cream parlours in Seoul, South Korea. Organic produce is popular in Korea and Mackie’s products were enthusiastically received in product tests. The first temperature-controlled shipments by sea arrived to coincide with the Korean World Cup Games in 2002. The partnership ended and Mackie’s now sells their products, all branded as Mackie’s of Scotland, direct to wholesalers and supermarket chains, providing opportunities throughout Asia. Sales are now well established in Korea, Malaysia, Taiwan, China and Mackie’s had export sales of almost £2m in 2019. Mackie’s prides itself on its new product innovation and in 2004 launched Mackie’s Ice Cubes using the farm’s spring water. Initially called Icy Glen they were subsequently rebranded as Mackice. Other innovations include a Low Fat Chocolate Iced Desert suitable for diabetics and an ‘Indulgent’ range with new flavours being regularly added including Salted Caramel and Madagascan Vanilla. Demand was stimulated by carefully crafted advertising such as the 2012 ‘Simply Creamy’ campaign, as well as using targeted price promotions. Production capacity was expanded to 15 million litres a year and 2018 saw demand reach 11 million litres. Mackie’s became the number one take home ice cream brand in Scotland being available nationally in multiples such as Tesco, Asda, and Ocado as well as through independent outlets. Ocado is a major British online supermarket and online sales have been growing rapidly. In the year to May 2019 annual turnover rose to £16.7million with pre-tax profits at £2.18 million (see Appendix B). The firm developed strong links with their consumers and been quick to adopt social media platforms as a means of interacting with and informing its customers. The company website is fun and informative and seeks customer views through the ‘Have your say’ page. Consumers are regularly involved in testing products and voting for new flavours and chose Indulgent Chocolate Orange as a limited-edition flavour ice cream. Product testing at the Royal Highland Show, and a consumer poll with the ‘Friends of Mackie’s’ email club (see Appendix C), saw Caramel Biscotti became a limited-edition flavour. Mango and Passionfruit flavour was added in 2018 as part of the ‘Celebrate the summer’ campaign. Mackie’s regularly uses fun in its communications and the ‘Extra Posh’ product range tubs pictured cows wearing tiaras (jewelled crowns). For the 30th anniversary of making ice cream, special anniversary tubs were produced. In 2017 the Ice Cream Parlour, ‘Mackie’s 19.2’ opened in Aberdeen. 19.2 represents the number of miles from the farm to the parlour which is ‘Sophistication dipped in fun’. The interior contains an illuminated multi-coloured cow and neon lit Italian ice cream counter. The parlour showcases, tests and gathers feedback on new handmade ice cream flavours and other innovative products. Scottish Qualifications Authority 12 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Crisps In 2009 Mackie’s launched a range of potato crisps after establishing a joint venture company with the 4th generation Taylor family who owned the Taypack potato growing and processing company. Mackie’s at Taypack is licensed to use the Mackie’s of Scotland brand name and has its own distinct website. The slogan ‘From plough to pack’ emphasises product quality through the stages of Ploughed, Picked, Perfected and Packed. Traditional crisps with three core flavours were launched, alongside new flavours with a unique Scottish identity — like Haggis and Cracked black pepper. Products are sold through major Scottish outlets and the company regularly attends trade fairs. There is a strong focus on new products such as ridge cut crisps, lentil waves and popcorn. In 2010 the firm received the Scotland Food & Drink Excellence Award, with Scotch Bonnet Chilli Pepper potato crisps winning Product of the Year. Second and third Excellence awards were subsequently gained along with a Great Taste Gold Award. Growth in international sales and expanded sales through Asda stores in England and Northern Ireland led to a move to a larger factory. 2015 saw the firm listed in a government initiative as one of the UK’s ‘50 Food Stars’. Sales continued to grow domestically and internationally with rapid expansion in China, moves into Europe, the UAE and Asia, and by 2017 the firm exported to 25 countries. That year they secured the Export Business of the Year prize and the International Growth Award delivered in partnership by private sector group Opportunity North East (ONE) and Aberdeenshire Council. Later that year the firm’s products gained an important listing with Ocado. Chocolate In 2014 Mackie’s launched a range of chocolate bars with four flavours similar to some of the ice creams, including honeycomb, dark mint, traditional milk and dark 70% cocoa. Initially production was trialled with an established producer in Arbroath before establishing their own farm based factory capable of producing five million bars per year. Mackie’s is well established in serving the growing indulgence product segments and high quality chocolate fits well with their quality ice cream and crisps. Exports have been helped by working with an established food distributor in Singapore and sales of chocolate grew by 63% in the year to May 2019, with exports a key driver in that growth. Ethical production The Mackie’s family is very proud of their environmental credentials in farming the land and producing the freshest high quality products. The company vision is to ‘be a Scottish global brand from the greenest company in Britain created by people having fun’. Scottish Qualifications Authority 13 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 They aim to be self-sufficient in energy with zero fossil fuel use, and in 2005 installed a wind turbine with a further three producing some 3MW. Solar panels installed on buildings and a 4 hectare site of panels installed in 2015 produce 1.8MW. The family established a Scholarship for Renewable Energy at Aberdeen University, delivered guest lectures at Abertay University and has offered work placements for students. An innovative refrigeration system, to be an exemplar low carbon refrigeration system began installation in 2020, replacing all old refrigerants with ammonia (a natural gas, with zero climate warming potential), powered by the energy efficient biomass boiler and absorption chiller — and on completion this will help Mackie’s in their aim to be self-sufficient, as it will reduce CO2 emissions and energy use by up to 80%. A biomass boiler also heats the office and farm buildings and solar panels are on roofs of the byre. Mackie’s arboretum contains 112 different tree species, providing a beautiful space that can be enjoyed by visitors and staff. A further 48 hectares were planted to provide habitats for wildlife, and grass strips sown around fields to create wildlife corridors and help protect waterways from fertiliser. Wetland areas and a pond encourage a diverse wildlife population. Mackie’s has its own water source and all water used is recycled and reused on the land along with the plentiful fertilizer produced by the cows. In 2010 Mackie’s started making their own ice cream tubs saving some 50,000 food miles per year as the tubs were previously imported. The firm actively encourages the recycling of its tubs and recycles card, paper, batteries and plastic at the farm. Cow welfare is very important, and happy cows produce more milk. The cows are milked by a voluntary access milking system – milking themselves on average three times a day. Each cow wears a collar which also measures the cows activity levels. The cows are housed with its own lying space complete with mattress, and feed is available at all times with fresh food added twice per day. A vet visits every week and an innovative ‘Moo-sic’ (music) experiment saw country music played to the cows resulting in a positive impact on the animals’ behaviour. Participation in the TV ‘Eat Well for Less’ series allowed Mackie’s to highlight the qualities of real dairy ice cream that led to their highly successful ‘Taste the Dairy Difference’ brand message. The people Mackie’s employs over 70 staff and the company vision recognises the contribution of its loyal, flexible and energetic workforce. The company signed up to pay the ‘Living Wage’ in 2015 and also the ‘Scottish Business Pledge’. The Living Wage is set at a higher rate than the legally set minimum wage. The Scottish Business Pledge is a values-led partnership between Government and business that is based on boosting productivity and competitiveness through fairness, equality and sustainable employment. Mackie’s places staff training, youth development, family friendly shift patterns and reward programmes at the core of the business. Scottish Qualifications Authority 14 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Mackie’s was one of the first food companies in Scotland to be awarded Investors in People status in 1997. This marked a big change in Management style from a 'dae fit yer telt' culture (do as you are told), to one of continuous involvement of all staff in setting and achieving goals. Mackie’s remains a family firm and regular consultation and discussions with employees are an essential means of maintaining its inclusive and fun company culture where all employees are valued as part of the wider ‘Mackie’s family’. Employees commonly stay for many years and Mackie’s celebrates their achievements and runs a business performance related bonus scheme. Making work fun and having happy staff is a core value and their ‘Faces of Mackie’s’ campaign was an example which showcases employees in their roles through photographs. Scottish Qualifications Authority 15 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Appendix A New product development kitchen and the taste panel The New Product Development Kitchen, officially opened in October 1996 by the Chairman of Tesco, provides ideas for the Growth programme and is a crucial resource, which enables the firm to maintain the quality of the ice cream and chocolate. The work of the kitchen is both technical and creative and plays a crucial role in looking for new products and flavours that fit Mackie’s Values. The kitchen is equipped with mini plant for ice cream production which replicates the ice cream dairy. The Kitchen is sufficiently large enough to be used as a production area to test out new products. The aim is to find at least one great new product each year as well as undertaking ‘Blue sky’ thinking regarding new products to expand the current product mix. Recently the company has established links with Abertay University Innovation Centre to help further develop the capacity to produce successful new products. In 2013 Mackie’s created its Sweetie (sweet) Kitchen to help produce its own Honeycomb (puff candy) that is used in its second most popular ice cream flavour – and they now make over 60 tonnes a year. The Sweetie Kitchen also produces its own Butterscotch as well as experimenting with other sweet treats that can potentially be used in its ice cream and chocolate products. Mackie's have a taste panel that meets at least once a week in the New Product Development Kitchen and undertakes an important role in developing new products and maintaining quality. Members of the Panel are staff volunteers selected by passing tests, which require a high sensitivity for flavours and aromas. Products with potential are then tested by food services customers and panels with a wider membership. Mackie’s also uses informal taste Panels - groups of staff volunteers who may not have passed the taste tests or not completed their training but whose opinions are still highly valued. Scottish Qualifications Authority 16 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Appendix B — Mackie’s of Scotland - Income statement/Profit and loss account - for the period to 31st May 2013 2014 2015 2016 2017 2018 2019 £ £ £ £ £ £ £ Turnover 10,284,432 11,147,549 11,433,324 12,155,090 12,217,787 13,854,382 16,665,316 Cost of sales (5,961,799) (6,820,882) (6,828,565) (6,479,834) (6,744,884) (8,233,223) (9,976,945) Gross profit 4,322,633 4,326,667 4,604,759 5,675,256 5,472,903 5,621,159 6,688,371 Distribution costs (397,739) (442,030) (447,034) (493,149) (474,275) (530,994) (696,564) Administrative expenses (3,828,790) (3,204,297) (3,400,958) (3,998,759) (3,969,848) (3,949,956) (4,151,286) Other operating income 148,657 142,405 75,779 60,471 44,860 41,225 37,450 Profit on sale of tangible assets 133,178 59,173 573,328 250,185 27,587 146,000 242,288 Reversal of exceptional bad debt - - 400,000 - - - - provision Loss on disposal of investments - - (14,000) - - - - Operating profit 377,939 881,918 1,791,874 1,494,004 1,100,227 1,327,434 2,120,259 Interest receivable and similar income - 767 48,926 92,672 86,787 75,956 65,144 Interest payable and similar expenses (33,377) (22,339) (19,968) (98,920) (33,029) (23,990) (8,852) Fair value movement on investments 250,183 220 - - 1,414 (2,815) (318) Profit before taxation 594,745 860,566 1,820,832 1,487,756 1,155,399 1,376,587 2,176,233 Tax on profit (47,944) (58,197) (313,244) (283,817) (118,018) (280,160) (450,649) Profit for financial year 546,801 802,369 1,507,588 1,203,939 1,037,381 1,096,425 1,725,584 © ‘Contains public sector information licensed under the Open Government Licence v3.0'. Adapted from companieshouse.gov.uk. Scottish Qualifications Authority 17 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Mackie’s of Scotland — Statement of financial position/Balance sheet – as at 31st May 2015 2017 2019 £ £ £ Non-current Assets Tangible assets 8,253,985 10,394,881 10,431,230 Investment properties 141,286 141,286 1,528,917 Investments 21,444 96,944 93,811 Biological assets 563,100 580,370 606,944 8,979,815 11,168,481 12,660,902 Current Assets Inventories 1,276,820 2,062,631 1,835,799 Biological assets 318,369 168,026 235,924 Trade Receivables 3,822,463 3,138,231 3,844,344 Cash at bank and in hand 664,559 3,221 822,812 6,082,211 5,372,109 6,738,879 Trade Payables (3,356,900) (2,666,155) (2,983,076) Net assets 2,725,311 2,705,954 3,755,803 Total assets less current 11,705,126 13,874,435 16,416,705 liabilities Scottish Qualifications Authority 18 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023  2015 2017 2019 £ £ £ Non-Current Liabilities (584,382) (571,624) (173,489) Provisions for liabilities (395,048) (365,795) (496,191) Net assets 10,725,696 12,937,016 15,747,025 Capital and reserves Called up share capital 262,288 262,288 262,288 Share premium account 3,869,252 3,869,252 3,869,252 Capital redemption reserve 315,065 315,065 315,065 Retained Earnings 6,279,091 8,490,411 11,300,420 Total equity 10,725,696 12,937,016 15,747,025 © ‘Contains public sector information licensed under the Open Government Licence v3.0'. Adapted from companieshouse.gov.uk. Scottish Qualifications Authority 19 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Appendix C Friends of Mackie’s and the public Mackie’s believes in celebrating the simple things in life and that its products are delicious, simple treats that can be enjoyed by all ages. The company believes in having fun whilst making ice cream and also wants the general public to have fun. The ‘Friends of Mackie’s’ email club encourages the public to have their say about Mackie's products and anything else the firm does to make improvements. The club allows the company to keep members informed about new products, farm activity and other company developments. Members receive exclusive offers and surprises along the way including taste test opportunities and dream flavours of ice cream and chocolate gifts for a lucky selection of fully registered friends each month. Mackie’s places great importance on its communications with the public, and as in everything it does it aims for the 50,000 members of the ‘Friends of Mackie’s’ to have an interesting and enjoyable experience. Mackie’s holds regular promotional events, an example being the ‘Summer of Simple Pleasures’ campaign that anyone can enter through the company website. There is a new prize each week, each with a link to the simple things in life, from cooking, eating, music, flowers and the outdoors. Mackie’s views ice cream as one of life's simple pleasures and each prize comes with a summer's worth of ice cream with the final week of the summer offering a lifetime supply of ice cream for the lucky winner. Mackie’s welcomes public comment and interaction through its website and several social media platforms, inviting comment, ideas, product reviews and likes and dislikes. The company places customers, the wider public and employees as being at the centre of everything they do. Scottish Qualifications Authority 20 Assessment Support Pack/J5TC 47/ASP001/AQ (Third Edition) Business with Accounting: Graded Unit 1 March 2023 Scottish Qualifications Authority Assessment Support Pack/J5TC 47/ASP001 (Third Edition) Business with Accounting: Graded Unit 1