... D’Leon issued long-term debt which reduced its financial strength and flexibility 3-22 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated, or posted to a publicly ... to offset profits in previous years or forward to offset profits in the future Capital gains – defined as the profits from the sale of assets not normally transacted in the normal course of business, ... cut off D’Leon’s trade credit A/P increased 260%, over the past year, while sales increased by only 76% 3-19 © 2013 Cengage Learning All Rights Reserved May not be scanned, copied, or duplicated,...