i. Does it appear that inventories could be adjusted? If so, how should that adjustment affect DLeons profitability and stock price?

j. In 2016, the company paid its suppliers much later than the due dates; also, it was not maintaining financial ratios at levels called for in its bank loan agreements. Therefore, suppliers could cut the company off, and its bank could refuse to renew the loan when it comes due in 90 days. On the basis of data provided, would you, as a credit manager, continue to sell to DLeon on credit? (You could demand cash on deliverythat is, sell on terms of CODbut that might cause DLeon to stop buying from your company.) Similarly, if you were the bank loan officer, would you recommend renewing the loan or demanding its repayment? Would your actions be influenced if, in early 2017, DLeon showed you its 2017 projections along with proof that it was going to raise more than $1.2 million of new equity?