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26 FINANCIAL STATEMENTS AND TAXES Part I of this case, presented in Chapter 3, discussed the situation of D'Leon Inc, a regional snack foods producer, after an expansion program. D'Leon had increased plant capacity and undertaken a major marketing ampaign in an attempt to "go national." Thus far, sales have not been up to the forecasted level, costs have been higher than were projected, and a large loss occurred in 2014 rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firm's survival Donna Jamison was brought in as assistant to Fred Campo, D'Leon's chairman, who had the task of getting the back into a sound financial position. D'Leon's 2013 and 2014 balance sheets and income statements, together with projections for 2015, are given in Tables IC 4.1 and IC 4.2. In addition, Table IC 4.3 gives the compan 2013 and 2014 financial ratios, together with industry average data. The 2015 projected financial statement data represent Jamison's and Campo's best guess for 2015 results, assuming that some new financing is arranged to get the company "over the hump