"I was sure that when our battery hit the market it would be an instant success," said Roger Strong, founder and president of Solar Technology, Inc. "But just look at the gusher of red ink for the first quarter. It's obvious that we're better scientists than we are businesspeople." The data to which Roger was referring follow: SOLAR TECHNOLOGY, INC. Income Statement For the Quarter Ended March 31 Sales (40,000 batteries) Less operating expenses: Net loss $1,480,000 Selling and administrative salaries $169,500 Advertising 113,000 Maintenance, production 63,000 Indirect labor cost 114,000 Cleaning supplies, production 27,000 Purchases of raw materials 406,000 Rental cost, facilities 120,000 Insurance, production 21,000 Depreciation, office equipment 35,000 Utilities 70,000 Depreciation, production equipment 90,000 Direct labor cost 270,000 Travel, Salespersons 29,000 Total operating expenses 1,527,500 $(47,500) Solar Technology was organized at the beginning of the current year to produce and market a revolutionary new solar battery. The company's accounting system was set up by Margie Wallace, an experienced accountant who recently left the company to do independent consulting work. The statement above was prepared by Cindy Smart, her inexperienced assistant. "At this rate we'll be out of business within a year," said Cindy Smart. "But I've double-checked these figures, so I know they're right." On April 3, just after the end of the first quarter, the company's finished goods storage area was swept by fire