How should Campbells acquire one of these companies: Cash payment, issue debt, issue common stock, issue preferred stock? Fully explain your answer.

J and J Snack Flowers Year-end December 29, 2018 Condensed Balance Sheet (thousand $) 25,306 Current Assets Cash Marketable securities Accounts receivable Inventories Prepaids & others Total Current Assets Year-end September 29, 2018 Condensed Balance Sheet (thousand $) 111,479 21,048 132,342 112,884 5,044 382,797 Percent 11.96% 2.26% 14.20% 12.11% 0.54% 41.07% 287,482 122,623 108,313 543,724 Percent 0.89% 0.00% 10.10% 4.31% 3.81% 19.11% Non-Current Assets Property, plant & equipment Marketable securities long term Other non-current 242,673 118,765 187,778 26.04% 12.74% 20.15% 743,847 204,125 1,353,841 26.14% 7.17% 47.58% Total Assets 932,013 100.00% 2,845,537 100.00% Current Liabilities Accounts payable Other current liabilities Total Current Liabilities 69,592 48,307 117,899 7.47% 5.18% 12.65% 242,084 158,255 400,339 8.51% 5.56% 14.07% Long-term Debt & Liabilities Total Liabilities Stockholders' Equity 55,023 172,922 759,091 5.90% 18.55% 81.45% 1,186,931 1,587,270 1,258,267 41.71% 55.78% 44.22% Total Liabilities & Stockholders' Equity 932,013 100.00% 2,845,537 100.00% Jand J Snack Flowers For the Year-ended September 29, 2018 Condensed Income Statement (thousand $) Percent 1,138,265 100.00% 801,979 70.46% 336,286 29.54% For the Year-end December 29, 2018 Condensed Income Statement (thousand $) Percent 3,951,852 100.00% 2,210,952 55.95% 1,740,900 44.05% Net sales Cost of goods sold Gross profit 1,507,256 95,405 92,281 Operating expenses Marketing Distribution Administrative Other Total Operating Expenses 37,757 8.38% 8.11% 3.32% 0.01% 19.81% 38.14% 0.00% 0.00% 0.54% 38.68% 68 225,511 21,300 1,528,556 Operating Income 110,775 9.73% 212,344 5.37% Other income (expenses) Investment income Interest and other 6,267 1,110 0.55% 0.10% 0.00% -0.38% (15,183) Income before tax 118,152 10.38% 197,161 4.99% Net Income 14,556 103,596 1.28% 9.10% 40,001 157,160 1.01% 3.98% J and J Snack For the Year-ended September 29, 2018 Condensed Statement of Cash Flows (thousand $) Flowers For the Year-end December 29, 20 Condensed Statement of Cash Flows (thousand $) Operating activities: Net income Depreciation and amortization Timing differences between expense and payment Net cash provided by operating activities 103,596 46,477 (26,706) 123,367 157,160 144,124 (5,391) 295,893 (99,422) (200,174) Investing activities: Purchases of property, plant & equipment Busines acquisitions Net purchases of marketable securities Other investing activities Net cash provided by investing activities (60,022) 0 (15,810) 2,693 (73,139) (2,209) (301,805) 6,100 Financining activities: Net issuance of common stock Net increase to debt Payment of dividends Other financing activities Net cash provided by financing activities (33,066) (370) (27,336) 178,101 (150,214) (1,798) 26,089 Effect of foreign exchange rate change Net increase (decrease) to cash (2,375) 20,517 20,177 Beginning cash 90,962 5,129 Ending cash 111,479 25,306 J and J Snack Flowers Year-end December 29, 2018 Condensed Balance Sheet (thousand $) 25,306 Current Assets Cash Marketable securities Accounts receivable Inventories Prepaids & others Total Current Assets Year-end September 29, 2018 Condensed Balance Sheet (thousand $) 111,479 21,048 132,342 112,884 5,044 382,797 Percent 11.96% 2.26% 14.20% 12.11% 0.54% 41.07% 287,482 122,623 108,313 543,724 Percent 0.89% 0.00% 10.10% 4.31% 3.81% 19.11% Non-Current Assets Property, plant & equipment Marketable securities long term Other non-current 242,673 118,765 187,778 26.04% 12.74% 20.15% 743,847 204,125 1,353,841 26.14% 7.17% 47.58% Total Assets 932,013 100.00% 2,845,537 100.00% Current Liabilities Accounts payable Other current liabilities Total Current Liabilities 69,592 48,307 117,899 7.47% 5.18% 12.65% 242,084 158,255 400,339 8.51% 5.56% 14.07% Long-term Debt & Liabilities Total Liabilities Stockholders' Equity 55,023 172,922 759,091 5.90% 18.55% 81.45% 1,186,931 1,587,270 1,258,267 41.71% 55.78% 44.22% Total Liabilities & Stockholders' Equity 932,013 100.00% 2,845,537 100.00% Jand J Snack Flowers For the Year-ended September 29, 2018 Condensed Income Statement (thousand $) Percent 1,138,265 100.00% 801,979 70.46% 336,286 29.54% For the Year-end December 29, 2018 Condensed Income Statement (thousand $) Percent 3,951,852 100.00% 2,210,952 55.95% 1,740,900 44.05% Net sales Cost of goods sold Gross profit 1,507,256 95,405 92,281 Operating expenses Marketing Distribution Administrative Other Total Operating Expenses 37,757 8.38% 8.11% 3.32% 0.01% 19.81% 38.14% 0.00% 0.00% 0.54% 38.68% 68 225,511 21,300 1,528,556 Operating Income 110,775 9.73% 212,344 5.37% Other income (expenses) Investment income Interest and other 6,267 1,110 0.55% 0.10% 0.00% -0.38% (15,183) Income before tax 118,152 10.38% 197,161 4.99% Net Income 14,556 103,596 1.28% 9.10% 40,001 157,160 1.01% 3.98% J and J Snack For the Year-ended September 29, 2018 Condensed Statement of Cash Flows (thousand $) Flowers For the Year-end December 29, 20 Condensed Statement of Cash Flows (thousand $) Operating activities: Net income Depreciation and amortization Timing differences between expense and payment Net cash provided by operating activities 103,596 46,477 (26,706) 123,367 157,160 144,124 (5,391) 295,893 (99,422) (200,174) Investing activities: Purchases of property, plant & equipment Busines acquisitions Net purchases of marketable securities Other investing activities Net cash provided by investing activities (60,022) 0 (15,810) 2,693 (73,139) (2,209) (301,805) 6,100 Financining activities: Net issuance of common stock Net increase to debt Payment of dividends Other financing activities Net cash provided by financing activities (33,066) (370) (27,336) 178,101 (150,214) (1,798) 26,089 Effect of foreign exchange rate change Net increase (decrease) to cash (2,375) 20,517 20,177 Beginning cash 90,962 5,129 Ending cash 111,479 25,306