First Exam Practice - Please respond the questions 1-5.

INTEGRATED CASE 'LEON INC., PART 11 .26 FINANCIAL STATEMENTS AND TAXES Part 1 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 campaign 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 2015 raffer 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 company back into a sound financial position. D'Leon's 2014 and 2015 balance sheets and income statements, together with projections for 2016, are given in Tables IC 4.1 and IC 4.2. In addition, Table IC 43 gives the company's 2014 and 2015 financial ratios, together with industry average data. The 2016 projected financial statement data represent Jamison's and Campo's best guess for 2016 results, assuming that some new financing is arranged to get the company "over the hump.