Question 5 Franco Co. is a convenient retail store that has a number of stores across Malaysia. The Managing Director, Mr. Francis is a very visionary and forward-looking person, and is considering to expanding his business by opening more stores. The company assesses the performance of each of their stores individually since cach store is regarded as a Profit Center. The target return on investment (ROI) from each store is 20% and some of the stores have been able to achieve an ROI above the target level. The demand for the company's products is rapidly growing. All the stores of the company, at an average, have a gross profit ratio of around 45%. The cost of capital is at 15%. The financial data given below is for two (2) of the company's stores for the year: Store 1 is located in KLIA airport and Store 2 is located in Nilai. KLIA Store 1,300,000 Sales Cost of Sales (COS) Operating Expenses Fixed Assets Current Assets Current Liabilities Long Term Loan 368,000 1,500,000 1,000,000 400,000 600.000 500.000 270,000 180,000 550,000 200.000 250.000 100.000 Required: a) Critically discuss the financial performance of the above stores using Return on Investment (ROI) measure and also, calculate other THREE (3) measures that you feel appropriate from the given data as above for both stores. Based on your findings, discuss whether each of the measures you used correctly reflects the stores' actual performance Note: ROI should be calculated based on net profit over net assets. (20 marks) b) Discuss TWO (2) non-financial performance indicators that can be used by Franco Co. in order to obtain a full picture of their stores' performance. (5 marks) (Total: 25 marks)