Prepare an annual operating budget for Troy Shoes based on this information. Show a gross profit and net income line and ignore any income tax effect.

Expected sales, 200 pair @ $200 average price

Cost of sales, 75% of sales

Internet fees, $52 per month

Shoe show entrance fees per year, $300

Mileage costs per year, $550

Advertising per month, $38

Depreciation of shelving per year $180

Owner withdrawals per month, $400