Requirement:

Write a summary summarizing the projected results for Cycle World and outlining your suggestions for improvement. All information listed below:

Michelle Lee has recently accepted the position of assistant manager at Cycle World, a bicycle store in St. Louis, Missouri. She has just finished her accounting courses.

Cycle World's manager and owner Joe Gomez asks Lee to prepare a budgeted income statement for 2021 based on the information he has collected.

Lee does not want to give Gomez this budget without making constructive suggestions for steps Gomez could take to improve the projected performance.

\begin{tabular}{|c|c|c|c|c|c|} \hline & & & Cycle World & & \\ \hline & & Budge & ted Income Statement & & \\ \hline & & For the Y & Year Ended July 31, 202 & & \\ \hline Net sales re & Venue & & & & 244,000 \\ \hline Cost of good & is sold & & & & 177,000 \\ \hline Gross profit & & & & & 67,000 \\ \hline Selling and & administrative & expenses: & & & \\ \hline Salaries & and commis\$ic & ions expense & & 46,000 & \\ \hline Rent expe & ense & & & 8,000 & \\ \hline Depreciati & tion expense & & & 2,000 & \\ \hline Insurance & expense & & & 800 & \\ \hline Miscellar & eous expen $ e & e & & 12,000 & 68,800 \\ \hline Operating Ids & ss & & & & 1,800 \\ \hline Interest expe & ense & & & & -225 \\ \hline Net income & (loss) & & & & 2,025 \\ \hline \end{tabular}