Following is clothing & accessories department store chain (multi stores, multi locations) budget. Due to COVID 19, the company has experienced reduction in business and they would like to update the forecastfrom original budgetPlease update forecast based on following assumptionsProvide management commentaries based on business environment, economy, market trend, demand, other business factors and major items of forecasted income statement

Please provide recommendations to improve profitability, margin and reduction in cost.

Please show calculations and work!

Excel is prefered, thanks!

($000's) Revenue Total Cost of Sales Gross Profit FY-20 (Original Budget) FY-20 (Updated Forecast) 60,000,000 42,000,000 70.0% #DIV/0! 18,000,000 30.0% #DIV/0! Payroll Expenses 7,500,000 12.5% #DIV/0! Bonus (10% of Payroll Expense) 750,000 1.3% #DIV/0! Rent 2,000,000 3.3% #DIV/0! Facility/Utilities 200,000 0.3% #DIV/O! Travel & Entertainment 1,000,000 1.7% #DIV/0! Sales & Marketing 1,200,000 2.0% #DIV/0! Legal & Professional 1,000,000 1.7% #DIV/0! Other General & Administrative Exp 1,200,000 2.0% #DIV/O! Depreciation 350,000 0.6% #DIV/0! Amortization 100,000 0.2% #DIV/0! Total Operating Expense 15,300,000 25.5% #DIV/0! Operating Income 2,700,000 4.5% #DIV/0! Interest Income (current cash balance $0.5M; interest rate 1%) Interest Expenses (current debt balance $1.5M, interest rate 5%) 5,000 0.0% #DIV/0! (75,000) -0.1% #DIV/O! Profit Before Tax 2,630,000 4.4% #DIV/0! Income Tax 657,500 1.1% #DIV/0! Net Income 1,972,500 3.3% #DIV/O! EBITDA Non GAAP Net Income GAAP Net Income Adjustments (Net of Tax): Amortization 3,150,000 5.3% #DIV/0! 1,972,500 75,000 Total Adjustments Non GAAP Net Income DSO 75,000 2,047,500 33 Accounts Receivable 5,500,000