Current Attempt in Progress Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. $794,800 EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue Less: Operating expenses Raw materials purchases $263,400 Direct labor cost 191.100 Advertising expense 92.700 Selling and administrative salaries 77.400 Rent on factory facilities 61,800 Depreciation on sales equipment 45,800 Depreciation on factory equipment 32,700 Indirect labor cost 30,000 Utilities expense 11.900 Insurance expense 8,800 Net loss 815,600 $(20.800) Prior to October 2020, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data you have acquired additional information as follows. 1. Inventory balances at the beginning and end of October were: Raw materials Work in process Finished goods October 1 $ 19.900 20.100 09.900 October 31 $35,500 14.000 63.000 2 Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should