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Hello, Please assist in solving and show work so I can understand in steps if possible. Empire Company is a manufacturer of smart phones. Its
Hello, Please assist in solving and show work so I can understand in steps if possible.
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 $794,900 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 $264,400 190,400 92,300 76,200 62,100 44,000 32,100 29,700 12,700 8,600 812,500 $(17,600) Net loss 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
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