This assignment requires a short two paragraph memo....Thanks!!

Assignment 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 World's manager and owner, Jeff Towry, asks Tse to prepare a budgeted income statement for 2011 based on the information he has collected. Tse's budget follows: Cycle World Budgeted Income Statement For the Year Ending July 31, 2011 Sales revenue $244,000 Cost of goods sold 177,000 Gross profit Operating expenses: Salary and commission expense Salary expense Depreciation expense Insurance expense Miscellaneous expenses Operating loss (1,800) Interest expense (225) Net loss $(2,025) 67,000 $46,000 8,000 2,000 800 12,000 68,000 Requirement 1. Tse does not want to give Towry this budget without making constructive suggestions for steps Towry could take to improve expected performance. Write a memo to Towry outlining your suggestions