MINI CASE: A multinational company, Fines Cosmetics ltd (FC) is considering awarding a franchise to a Zambian company to be a sole distributor of all its beauty products in Zambia. Fines has been one of major players in the cosmetic industry with a trading history of over 50 years. They are currently looking at entering the Zambian markets through franchising. Applications have been received from three (3) Zambian companies that meet the requirements. MBS ltd is a large Lusaka based distribution company that has been in business for many years. Yinu ltd is a small niche player in the Zambian distribution market formed about 5 years ago. Miguel ltd has been trading for a long time but is only a fraction of the size of MBS ltd. All the three businesses have shown logistical and operational capacity to the handle the FC franchise. Therefore, the board of directors of Fines Co ltd have indicated that the successful applicant will be based on the relative financial strength of the three firms. Below are the key financial figures on each of the three companies vying for the franchise. INCOME STATEMENTS STATEMENT OF FINANCIAL POSITION Page 2 of 3 REOUIRED: Write a report to the directors of Fines Co ltd in which you: a) Analyze the performance of the three (3) firms over the two years (2021 and 2022) using appropriate ratios i.e. profitability, liquidity, activity, and debt ratios. b) Highlight the strengths and weakness of each company. c) Based on your analysis in (a) above, make recommendations of which of the three companies should be given the franchise and why? Give reasons for your choice. d) Discuss ANY THREE non-financial factors that must be considered awarding the franchise