Pharoah Company is a manufacturer of computers. Its controller resigned in October 2022. An inexperienced assistant accountant has prepared the following income statement for the month of October 2022. PHAROAHCOMPANY Income Statement For the Month Ended October 31, 2022 Sales (net) $ 783,300 Less: Operating expenses Raw materials purchases $264,150 Direct labour cost 190,300 Advertising expense 89,450 Selling and administrative salaries 74,200 Rent on factory facilities 60,150 Depreciation on sales equipment 44,900 Depreciation on factory equipment 31,400 Indirect labour cost 28,750 Utilities expense 12,900 Insurance expense 8,050 804,250 Net loss 20,950 Prior to October 2022, the company had been profitable every month. The compaty's president is concerned about the accuracy of the income statement. As his friend, he has asked you to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired the following additional information. 1. Inventory balances at the beginning and end of October were as follows: October 1 October 31 Raw materials $17,400 $29,800 Work in process 16,400 14,500 Finished goods 30,050 45,650 2. Only 75% of the utilities expense and 50% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities. Show a correct income statement for October 2022. Enter negative amounts using either a negative sign preceding the number or parentheses