Case 2. Renee Willis has recently accepted the position of assistant manager at Jack and Jill, a children's clothing store in St. Louis. She has just finished her accounting courses. Jack and Jill's manager and owner, Kristy Simms, asks Renee to prepare a budgeted income statement for 20X6 based on the information she has collected. Willis' budget follows: JACK AND JILL Budgeted Income Statement For the Year Ending July 31, 20X6 Sales revenue. $240,000 Cost of goods sold. 172,000 Gross profit..... 68.000 Operating expenses: Salary and commission expense. $46,000 Rent expense 8.000 Depreciation expense 2,000 Insurance expense Miscellaneous expenses. 800 12,000 68.800 Operating loss. Interest expense (800) 225 Net loss. (1,025) Required Willis does not want to give Simms this budget without making constructive suggestions for steps Simms could take to improve expected performance. Write a memo to Simms outlining your suggestions. Your memo should take the following form: Date: To: Ms. Kristy Simms, Manager Jack and Jill From: Renee Willis Subject: Jack and Jill's 20X6 budgeted income statement