Donna Tse has recently accepted the position of assistant manager at Cycle World, a bicycle store in St. Louis. She has just finished her accounting courses. Cycle Worlds manager and owner, Jeff Towry, asks Tse to prepare a budgeted income statement for 2015 based on the information he has collected. Tses budget follows:

Tse does not want to give Towry this budget without making constructive suggestions for steps Towry could take to improve expected performance. Assume the role of Donna Tse. Write a memo to Towry outlining your suggestions.

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Please do not copy and paste the answer of the similar question posted. I found three questions of this sort and all three had the exact same answer. The answer listed on the other questions is:

To, Jeff Towry The manager of Cycle World

St.Louuis

Sir, Budget is one of the strongh financial tool to achive the business the objectve. I am hereby listing out few suggestion to improve the performance of our company.

To improve business performance: 1-Define the Present and Future. Use outside resources to create a picture of the organizations current state and future, related to market trends.

2-Pick a Few Well-Defined Goals. Prioritize one to five goals. 3-Create a Plan. Detail the time it covers, actions, responsibilities, resources, and specific outcomes. 4-Get the Right People on the Job. Fit the best people to responsibilities. Monitor Activities and Results Use a system that gives feedback and forecasts against budgets and timeframes.

1.Identify non-value added activities in production process

2. Avoid cost wastage

3. Coduct review to eliminate income leakage.

4. Build out appropriate credit policy to avoid bad debt.

5. Issue attracive discount policy.

6. Conduct a market survey

7. improve after sales service activities

8. Give priority for customer satisfaction.

I hope we will achive the estimated target by implimenting those activities for the coming year.

Thanks, Donna Tse ***************************

Thanks so much!!

CYCLE WORLD Budgeted Income Statement For the Year Ended July 31, 2015 \begin{tabular}{lr} Sales Revenue & $244,000 \\ \hline Cost of Goods Sold & 177,000 \\ \cline { 2 - 3 } Gross Profit & 67,000 \end{tabular} Selling and Administrative Expenses: CYCLE WORLD Budgeted Income Statement For the Year Ended July 31, 2015 \begin{tabular}{lr} Sales Revenue & $244,000 \\ \hline Cost of Goods Sold & 177,000 \\ \cline { 2 - 3 } Gross Profit & 67,000 \end{tabular} Selling and Administrative Expenses