Integrated Case

4-25

DLeon Inc., Part II

Financial Statement Analysis

Part I of this case, presented in Chapter 3, discussed the situation of DLeon

Inc., a regional snack foods producer, after an expansion program. DLeon

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 2008 rather than the expected profit. As a result, its

managers, directors, and investors are concerned about the firms survival.

Donna Jamison was brought in as assistant to Fred Campo, DLeons

chairman, who had the task of getting the company back into a sound

financial position....