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. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $794,000 Less: Operating expenses Raw materials purchases $264,100 Direct labor cost 190,200 Advertising expense 92,900 Selling and administrative salaries 77,400 Rent on factory facilities 61,500 Depreciation on sales equipment 44,600 Depreciation on factory equipment 32,100 Indirect labor cost 28,900 Utilities expense 11,700 Insurance expense 8,500 811,900 Net loss $(17,900)