Eddy Wong, accountant for Alibaba Company, prepared the following income statement for the period ending December 3 20XX. Sales $1,600,000 Expenses Purchases of materials Salaries Advertising Administrative travel Manufacturing utilities Facility rental Depreciation Sales commissions Factory Insurance Office utilities Management salaries Total expenses 240,000 266,000 37,000 27,000 49,000 90,000 63,000 31,000 40,000 25,000 380,000 $1,248,000+ Net income $ 352,000 The purchases of materials included 10% indirect materials All the indirect materials purchased were used in production 35% of the salaries were for indirect manufacturing labor and the other 65% was direct labourd The facility was used partly for the sales and administrative team (20%) and the remainder for manufacturing activities. 25% of the depreciation expense was related to delivery trucks and 75% was related to manufacturing activities One third of the management salaries relate to manufacturing activities Furthermore, Wong compiled the following information with respect to inventories for the quarter (note that the company does not maintain inventories of indirect materials). Raw materials (all direct materials) Work-in-progress Finished goods Beginning $5,000 11,000 11,000 Ending $9,000 9,000 7,000 Required: 1. Identify three conceptual errors, if any, in the income statement presented above. 2. Prepare a cost of goods manufactured statement for the period. 3. Prepare a revised income statement for the periode