Problem 19-05A a-b Waterway 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 o October 2020. WATERWAY COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue 794,000 Less: Operating expenses Raiw materials purchases Direct labor cost Advertising expense Seling and administrative salarie Rent on factory facilities Depreciation on sales equipment Deprecation on factory equipment Indirect labor cost Utilities expense Insurance expense 264,100 190,200 92,900 77,400 61,500 44,600 t32,100 28,900 11,700 ,500 811,900 $(17,900) Net loss Prior to October 2020, the company had been profitable every month. The company's president is eview the income statement and make necessary corrections. After examining ather manufacturing Inventory balances at the beginning and end of October were: concemed about the accuracy of the income statement. As her friend, you have been asked to cost data, you have acquired additional information as follows