Swift Company was organized on March 1 of the current year After five months of startup losses, management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. August's income statement follows. SWIFT COMPANY Income Statement 34 Sales Less: Operating expenses: For the Month Ended August 31 $500,000 Indirect labour cost Utilities Direct labour cost Raw materials purchased Depreciation, sales equipment Insurance $ 15,000 17,000 60,000 Depreciation, factory equipment 25,000 195,000 18,000 3,000 Rent on facilities 49,000 Selling and administrative salaries 42,000 Advertising Net loss 85,700 510,500 $(10,500) The company's controller resigned a month ago. Sam, a new assistant in the controller's office, prepared the income statement above Sam has had little experience in manufacturing operations. After seeing the $10.500 loss for August, Swift's president stated, "I was sure we'd be profitable within six months, but our six months are up and this loss for August is even worse than July's, I think it's time to start looking for someone to buy out the company's assets--if we don't within a few months there won't be any assets to sell By the way, I don't see any reason to look for a new controller. We'll just limp along with Sam for the time being