CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Problem 14-5A Empire Company is a manufacturer of smart phones. Its controler resigned in October 2017. An inexperienced assistant accountant has prepared the fllowsing income statement for the month of October 2017 EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $795,000 Less: Operating expenses Raw materials purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense s 264,600 91,000 7,800 61,000 45,800 32,500 28,200 11,600 8:300 811,000 16,000 Net loss As her friend, you have Prior to October 2017, the company had been profitable every month. The company's president is concerned about the accuracy of the income been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired addltional information as follows 1. Inventory balances at the beginning and end of October were