QUESTION ONEMakubi Limited wants to acquire one of the two companies below and as financial analyst you have been given the financial statements of the two companies by the chief financial officer to help analyse the financial performance and financial position of the companies and recommend the company Makubi Limited which company should acquire and the reasons for your recommendation.Statement of profit or Loss for the year ended $31$ST December, $2022$ RhinoLion TZSMillionTZSMillionSales revenue$1,4001,525$Cost of sales$(775)(755)$Gross profit$645770$Administration expenses$(120)(185)$Distribution costs$(220)(325)$Operating profits$305260$Finance cost$-(25)$Profit before tax$305235$Tax$(30)(25)$Profit for the year$275210$ Statement of Financial Position as at $31$st December, $2022$ Rhino Lion TZSMillionTZSMillionTZSMillionTZSMillionASSETS Non$-$current Assets: Property Plant and Equipment $1,2252,095$Current Assets: Inventory$4551,465$ Trade receivables$230375$ Cash$/$bank$3201,005751,915$Total Assets $2,2304,010$ EQUITY Equity share capital$1,5902,685$ Retained earnings$5402,1308853570$LIABILITIES Non$-$current Liabilities: $10\%$ Loan notes$--250$Current Liabilities: Trade payables $100190$Total Equity and Liabilities $2,2304,010$ Note:The two companies are in the same sector and the industry key performance indicators $($KPI$)$ for the year $2022$ are given to you to help you analyse the Companies.i$.$ Gross profit margin $30\%$ii$.$ Operating profit margin $20\%$iii. ROCE $($Operating profit$/$capital employed $20\%$iv$.$ Trade payables days $60$ daysv. Inventory turnover $1\mathrm{.}5$ timesvi. Quick ratio $1$ timevii. Debt$/$Equity ratio $50\%$viii. Earnings per share TZS $0\mathrm{.}20$ REQUIRED:a$)$ Calculate the ratios above for Rhino Company and Lion Company for $2022.$b$)$ Analyse the financial performance and financial position of the companies and recommend Makubi Limited which company should acquire and the reasons for your recommendation. QUESTION TWOPerfect printers had sales totaling Tshs $40,000,000$ in fiscal year $2020.$ Some ratios for the company are listed. Use this information to determine the shilling values of various income statement and balance sheet accounts as requested.Perfect printers for the year ended December, $31$st $2020$SalesTshs $40,000,000$Gross profit margin$80\%$Operating profit margin$35\%$Net profit margin$8\%$Return on total assets$16\%$Return on equity$20\%$Total asset turnover$2$Average collection period$62\mathrm{.}2$ days Calculate values for the following:a$)$ Gross profits.b$)$ Cost of goods sold.c$)$ Operating profits.d$)$ Operating expenses.e$)$ Net profit.f$)$ Total assets.g$)$ Total equity.h$)$ Accounts receivable. QUESTION THREEPanAFRICA Ltd is a Tanzanian firm famous for production of electronic equipment. The company top management has been concerned about the Companys performance especially in comparison to its competitors and the industry in which it operates. Given below are the Statement of Profit or loss and Statement of Financial Position for the company for the year ended $31$st December $2023.$PanAFRICA Ltd Statement of Financial Position as at $31$st December $2023$ and $31$st December $2022.20222023$PARTICULARSTZS $000,000$TZS $000,000$Current assets cash$150125$Accounts receivable$350375$Inventory$475550$Total current assets$97510,50$Non$-$current assets Plant and equipment$2,4252750$Less: accumulated depreciation$(1,000)(1,200)$Net plant and equipment$1,4251,550$Total assets$2,4002,600$Liabilities and equity Liabilities Current Liabilities Accounts payable$200150$Notes payable current $9\%-150$Total current liabilities$200300$Non$-$current liabilities Long$-$term debt$400600$Total liabilities$800900$Equity Common stock$300300$Paid in capital$600600$Retained earnings$700800$Total equity$1,6001,700$Total equity and liabilities$2,4002,600$ QUESTIONPanAFRICA Ltd Statement of profit or loss the year ended $31$st December $2023$ and $31$st December $202220222023$ TZS $000,000$TZS $000,000$Sales$1,2001,450$Cost of goods sold$700850$Gross profit$500600$Operating expenses$3040$Depreciation$220200$Net operating income$250360$Interest expense$5064$Net income before taxes$200296$Taxes $40\%80118$Net income after tax$120178$ The industrial average performance for $2018$ was as follows: $2023$Current ratio$3\mathrm{.}25$Quick ratio$2\mathrm{.}75$Inventory turnover$2\mathrm{.}2$Average collection period$90$Debt ratio$0\mathrm{.}20$Times interest earned$7\mathrm{.}00$Total asset turnover$0\mathrm{.}75$Non$-$current asset turnover$1$Operating profit margin$20\%$Return on equity$9\%$Required:a$)$ For each of the given industrial average performances, calculate the firms corresponding ratio and discuss the firms performance. b$)$ What are disadvantages of using ratios as the basis of performance measurement?