eekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June's income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales Less operating expenses: Selling and administrative salaries Rent on facilities Purchases of raw materials Insuranc Depreciation, sales equipment Utilities costs Indirect labour Direct labour Depreciation, factory equipment Maintenance, factory Advertising 46,200 58,000 263,000 11,800 13,700 69,400 133,400 111,600 16,608 9,800 98,800 832,300 $ (37,300) Operating loss