In Chapter 4 read again problem 4-26 D'Leon, Inc. the Integrated Case. Prepare an MDA covering the historical and forecasted years 2018-2020E in the same style as JJSF's. Use only the information available from the textbook from both Part I, starting on page 101 and Part II starting on page 144. You should have at least two headings, 1) Liquidity and Capital Resources and 2) Results of Operations

This should be a concise, typed document that communicates the condition of the company as you understand it.

In Chapter 4 read again problem 4-26 D'Leon, Inc. the Integrated Case. Prepare an MDA covering the historical and forecasted years 2018-2020E in the same style as JJSF's. Use only the information available from the textbook from both Part I, starting on page 101 and Part II starting on page 144. You should have at least two headings, 1) Liquidity and Capital Resources and 2) Results of Operations

This should be a concise, typed document that communicates the condition of the company as you understand it.

3-20 FINANCIAL STATEMENTS AND TAXES Donna Jamison, a 2014 graduate of the University of Florida, with 4 years of banking experience, was recently brought in as assistant to the chairperson of the board of D'Leon Inc., a small food producer that operates in north Florida and whose specialty is high-quality pecan and other nut products sold in the snack foods market. D'Leon's president, Al Watkins, decided in 2018 to undertake a major expansion and to "go national" in competition with FritoLay, Eagle, and other major snack foods companies. Watkins believed that D'Leon's products were of higher quality than the competition's, that this quality differential would enable it to charge a premium price, and that the end result would be greatly increased sales, profits, and stock price. The company doubled its plant capacity, opened new sales offices outside its home territory, and launched an expensive advertising campaign. D'Leon's results were not satisfactory, to put it mildly. Its board of directors, which consisted of its president, vice president, and major stockholders (all of whom were local businesspeople), was most upset when directors learned how the expansion was going. Unhappy suppliers were being paid late, and the bank was complaining about the deteriorating situation and threatening to cut off credit. As a result, Watkins was informed that changes would have to be made and quickly; otherwise, he would be fired. Also, at the board's insistence, Donna Jamison was brought in and given the job of assistant to Fred Campo, a retired banker who was D'Leon's chairperson and largest stockholder. Campo agreed to give up a few of his golfing days and help nurse the company back to health, with Jamison's help. Jamison began by gathering the financial statements and other data given in Tables IC 3.1, IC 3.2, IC 3.3, and IC 3.4. Assume that you are Jamison's assistant. You must help her answer the following questions for Campo. (Note: We will continue with this case in Chapter 4, and you will feel more comfortable with the analysis there. But answering these questions will help prepare vou for Chapter 4. Provide clear explanations.) Balance Sheets Income Statements doduction firtitaton? Statement of Stockholders' Equity, 2019 Table IC 3.4. Statement of Cash Flows, 2019 Operating Activities Net income Depreciation and amortization Increase in accounts payable increase in accruals increase in accounts receivable increase in irventories Net cash provided by operating activities Investing Activities Additions to property. plant, and equipment Net cash used in investing activities Financing Activities increase in notes payable 5.436,808 increase in long-term debt 400,000 Payment of cash dividends Met cash provided by financing activites $825,80](11,000) Summary Net decrease in cash. (5) 50,318 ) Cash at beginning of year Cash at end of year 4-26 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 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 2019 rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firmis survival. Donna Jamison was brought in as assistant to Fred Campo, DLeon's chairman, who had the task of getting the company back into a sound financial position. D'Leon's 2018 and 2019 balance sheets and income statements, together with projections for 2020, are given in Tables IC 4.1 and IC 4.2. Note that D'Leon is exempt from the interest deduction limitation because its average gross receipts for the prior 3 years was less than $25 million. So 100% of its interest expense is deductible. Also, many of D'Leon's assets have lives greater than 20 years and thus qualify for the altemative depreciation system (straight line) rather than the 100\% bonus depreciation. In addition. Table IC 4.3 gives the company's 2018 and 2019 financial ratios, together with industry average data. The 2020 projected financial statement data represent Jamison's and Campo's best guess for 2020 results, assuming that some new financing is arranged to get the company "over the hump." Balance Sheets Note: Eindicates estimated. The 2020 data are forecasts. Income Statements Rotie Analyais Note: E indicater estimated. The 2020 data are foressasts. 3-20 FINANCIAL STATEMENTS AND TAXES Donna Jamison, a 2014 graduate of the University of Florida, with 4 years of banking experience, was recently brought in as assistant to the chairperson of the board of D'Leon Inc., a small food producer that operates in north Florida and whose specialty is high-quality pecan and other nut products sold in the snack foods market. D'Leon's president, Al Watkins, decided in 2018 to undertake a major expansion and to "go national" in competition with FritoLay, Eagle, and other major snack foods companies. Watkins believed that D'Leon's products were of higher quality than the competition's, that this quality differential would enable it to charge a premium price, and that the end result would be greatly increased sales, profits, and stock price. The company doubled its plant capacity, opened new sales offices outside its home territory, and launched an expensive advertising campaign. D'Leon's results were not satisfactory, to put it mildly. Its board of directors, which consisted of its president, vice president, and major stockholders (all of whom were local businesspeople), was most upset when directors learned how the expansion was going. Unhappy suppliers were being paid late, and the bank was complaining about the deteriorating situation and threatening to cut off credit. As a result, Watkins was informed that changes would have to be made and quickly; otherwise, he would be fired. Also, at the board's insistence, Donna Jamison was brought in and given the job of assistant to Fred Campo, a retired banker who was D'Leon's chairperson and largest stockholder. Campo agreed to give up a few of his golfing days and help nurse the company back to health, with Jamison's help. Jamison began by gathering the financial statements and other data given in Tables IC 3.1, IC 3.2, IC 3.3, and IC 3.4. Assume that you are Jamison's assistant. You must help her answer the following questions for Campo. (Note: We will continue with this case in Chapter 4, and you will feel more comfortable with the analysis there. But answering these questions will help prepare vou for Chapter 4. Provide clear explanations.) Balance Sheets Income Statements doduction firtitaton? Statement of Stockholders' Equity, 2019 Table IC 3.4. Statement of Cash Flows, 2019 Operating Activities Net income Depreciation and amortization Increase in accounts payable increase in accruals increase in accounts receivable increase in irventories Net cash provided by operating activities Investing Activities Additions to property. plant, and equipment Net cash used in investing activities Financing Activities increase in notes payable 5.436,808 increase in long-term debt 400,000 Payment of cash dividends Met cash provided by financing activites $825,80](11,000) Summary Net decrease in cash. (5) 50,318 ) Cash at beginning of year Cash at end of year 4-26 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 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 2019 rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firmis survival. Donna Jamison was brought in as assistant to Fred Campo, DLeon's chairman, who had the task of getting the company back into a sound financial position. D'Leon's 2018 and 2019 balance sheets and income statements, together with projections for 2020, are given in Tables IC 4.1 and IC 4.2. Note that D'Leon is exempt from the interest deduction limitation because its average gross receipts for the prior 3 years was less than $25 million. So 100% of its interest expense is deductible. Also, many of D'Leon's assets have lives greater than 20 years and thus qualify for the altemative depreciation system (straight line) rather than the 100\% bonus depreciation. In addition. Table IC 4.3 gives the company's 2018 and 2019 financial ratios, together with industry average data. The 2020 projected financial statement data represent Jamison's and Campo's best guess for 2020 results, assuming that some new financing is arranged to get the company "over the hump." Balance Sheets Note: Eindicates estimated. The 2020 data are forecasts. Income Statements Rotie Analyais Note: E indicater estimated. The 2020 data are foressasts