Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 20X8 based on the information he has collected. Tse's budget follows: Cycle World Budgeted Income Statement For the Year Ended July 31, 20X8 Net Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Salaries and Commissions Expense $46,000 $244,000 177,000 67,000 Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 at Miscellaneous Expense 12.000 68,800 Operating Loss (1,800) Interest Expense (225) Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 Miscellaneous Expense 12,000 68,800 Operating Loss (1,800) Interest Expense (225) Net Income (Loss) $ (2,025) 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.

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 20X8 based on the information he has collected. Tse's budget follows: Cycle World Budgeted Income Statement For the Year Ended July 31, 20X8 Net Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Salaries and Commissions Expense $46,000 $244,000 177,000 67,000 Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 at Miscellaneous Expense 12.000 68,800 Operating Loss (1,800) Interest Expense (225) Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 Miscellaneous Expense 12,000 68,800 Operating Loss (1,800) Interest Expense (225) Net Income (Loss) $ (2,025) 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.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 43P: Norton Company, a manufacturer of infant furniture and carriages, is in the initial stages of...
See similar textbooks
icon
Related questions
Question
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 20X8 based on the information he has collected. Tse's budget follows: Cycle World Budgeted Income Statement For the Year Ended July 31, 20X8 Net Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Salaries and Commissions Expense $46,000 $244,000 177,000 67,000 Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 at Miscellaneous Expense 12.000 68,800 Operating Loss (1,800) Interest Expense (225)
Transcribed Image Text: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 20X8 based on the information he has collected. Tse's budget follows: Cycle World Budgeted Income Statement For the Year Ended July 31, 20X8 Net Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Salaries and Commissions Expense $46,000 $244,000 177,000 67,000 Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 at Miscellaneous Expense 12.000 68,800 Operating Loss (1,800) Interest Expense (225)
Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 Miscellaneous Expense 12,000 68,800 Operating Loss (1,800) Interest Expense (225) Net Income (Loss) $ (2,025) 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.
Transcribed Image Text:Rent Expense 8,000 Depreciation Expense 2,000 Insurance Expense 800 Miscellaneous Expense 12,000 68,800 Operating Loss (1,800) Interest Expense (225) Net Income (Loss) $ (2,025) 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.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS