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 $794,300 Less: Operating expenses Raw materials purchases $264,700 Direct labor cost 192,000 Advertising expense 92,000 Selling and administrative salaries 76,100 Rent on factory facilities 62,300 Depreciation on sales equipment 44,100 Depreciation on factory equipment 32,900 Indirect labor cost 28,400 Utilities expense 12,600 Net loss Insurance expense 8,600 813,700 $(19,400)