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 con Statement For the Month Ended. As Sales $470,000 Less Operating expenses Indirect labour cost $1),200 Utilities 15,000 Direct labour cost 66,000 Depreciation, factory qulpuent 25,000 Haw materials purchased 177,000 Depreciation, sales equipment 13,000 Insurance 2,600 Rent on facilities Selling and administrative salaries 36,000 Advertising 38 200 476,500 Net loss $ (6,500) 4),600 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 $6,500 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. Additional information about the company follows: o. Approximately 60% of the utilities cost and 70% of the insurance apply to tactory operations. The remaining amounts apply to selling and administrative activities. b. Inventory balances at the beginning and end of August were as follows: 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 con Statement For the Month Ended. As Sales $470,000 Less Operating expenses Indirect labour cost $1),200 Utilities 15,000 Direct labour cost 66,000 Depreciation, factory qulpuent 25,000 Haw materials purchased 177,000 Depreciation, sales equipment 13,000 Insurance 2,600 Rent on facilities Selling and administrative salaries 36,000 Advertising 38 200 476,500 Net loss $ (6,500) 4),600 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 $6,500 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. Additional information about the company follows: o. Approximately 60% of the utilities cost and 70% of the insurance apply to tactory operations. The remaining amounts apply to selling and administrative activities. b. Inventory balances at the beginning and end of August were as follows