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. 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: 2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Prepare a correct income statement for October 2020. Cost of Goods Sold Gross Profit Operating Expenses Advertising Expense Selling and Administrative Salaries Depreciation Expense-Sales Equipment * Utilities Expense Insurance Expense Total Operating Expenses Net Income / (Loss)