Mine is a sad case.
Discuss the situation of D'Leon Inc. D'Leon had increased plant capacity and undertaken a major marketing campaign in an attempt to "go national. As a result, it's 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 in a sound financial position.
D'Leon's and balance sheets and income statements, together with projections forare giving in the Tables IC and IC In addition, Table IC gives the company's and financial ratiostogether with the industry average data.
The projected financial statement data represent Jamison's and Campo's best guess for results, assuming that some new financing is arranged to get the company "over the hump". Jamison examined monthly data for not given in this caseand she detected an improving pattern during the year.
Monthly sales were rising, cost were falling, and large losses in the early months and turned to a small profits by December.
Thus, the annual data looks somewhat worse that final monthly data. Also, it appears to be taking longer for the advertising program to get the message out, for the new sales offices to generate sales and for the new manufacturing facilities to operate efficiently.
In other words, the lags between spending sales, and deriving benefits were longer that D'Leon's managers had anticipated. For these reasons, Jamison and Campo see hope for the company- provided it can survive in the short run.
Jamison must prepare an analysis of where the company is now, and what it must do to regain its financial health, and what action should be taken. Your assignment is to help her answer the following questions, provide clear explanations, not yes or no answer.
Why are ratio useful? What are the five major categories of ratio?
What can you say about the company's liquidity position ininand and as projected for ? We often think of ratio as being useful 1 to managers to help run the business2 to bankers for credit analysisand 3 stockholders for stock valuation.
Would these different types of analysts have an equal interest in the company's liquidity ratio? Calculate the inventory turnoverdata sales outstanding DOSfixed assets turnover, and total assets turnover. How does D'Leon's utilization of assets stack up against the other firms in the industry?
Calculate debt and times-interest-earned ratios.
How does D'Leon compare with the industry with respect to financial leverage? What can you conclude from these ratios? What can you say about these ratios? Do these ratios indicate that investors are expected to have a high or low opinion of the company?
Use the DuPont equation to provide a summary and overview of D'Leon's financial condition as projected for What are the firm's major strengths and weaknesses?
Use the following simplified balance sheet to show, in general terms, how an improvement in the DSO would tend to affect the stock price. For example, the the company could improve its collection procedures and thereby lower its DSO from Division Of Mineral Resources Management, Ohio Department of Natural Resources, Columbus, and Enon Sand & Gravel, LLC, Sabina, notice of appeal from Reclamation Commission, Case Nos.
. Integrated Case D’Leon Inc., Part II Financial Statement Analysis Part I of this case discussed the situation of D’Leon I nc., 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.”61%(18). Rating and reviews for Professor Leon Prieto from Clayton State University show up to class ON TIME, no phones, no laptops. Group project, exams, and case studies.
He cares about his students and wants us to succeed. theres no way you cant pass! we never used the book, mostly went over powerpoints or watched a case study in class, and.
The official website of the Federal Trade Commission, protecting America’s consumers for over years. Integrated Case: Financial Statement Analysis: Discuss 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. D'Leon Inc. Case Study Words Jun 25th, 16 Pages EXECUTIVE SUMMARYD'Leon Incorporated is a small food producer that specializes in high-quality pecan and other nut products sold in the snack-foods market.