Central Community College Budget Recommendation Business Memorandum

I’m trying to study for my Business course and I need some help to understand this question. Consider this situation.  You are the Finance Director for a small local business.  This morning, you reviewed this basic summary quarterly income statement. Your supervisor (the Company President) just stopped by for a visit to discuss this situation – and he was obviously not happy. After a short discussion with him, he wanted you to produce the following: