EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $794,300 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 $263,300 190,900 91,500 77,400 62,600 44,000 32,900 30,100 12,800 8,400 813,900 Net loss $(19,600) Prior to October 2017, the company had been profitable every month. The compan you have been asked to review the income statement and make ne information as follows. cessary correcti 1. Inventory balances at the beginning and end of October were: October 1 October 31 Raw materials 19,400 $ 35 300