Problem 1-5A (Video) Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement fo the month of October 2020. $794,800 EMPIRE COMPANY Income Statement For the Month Ended October 31, 20 Sales revenue Less: Operating expenses Raw materials purchases $264,900 Direct labor cost 189,100 Advertising expense 91,500 Selling and administrative salaries 77,600 Rent on factory facilities 61,600 Depreciation on sales equipment 45,000 Depreciation on factory equipment 32,900 Indirect labor cost 30,000 Utilities expense 13,000 Insurance expense 9,100 Net loss 814,700 $(19,900) 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 be asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows. CALCULATOR PRUNTER VERSION Insurance expense Net loss