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 For the Month Ended August 31 Sales Less: Operating expenses $ 455,000 Indirect labour cost Utilities Direct labour cost Depreciation, factory equipment Raw materials purchased Depreciation, sales equipment Insurance Rent on facilities Selling and administrative salaries Advertising $ 12,300 15,000 69,000 22,000 168,000 18,000 2,000 40,000 33,000 83,700463,000 Net loss $ (8,000) 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 li $8,000 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. tle experience in manufacturing operations. After seeing the Additional information about the company follows a. Some 50% of the utilities cost and 80% of the insurance apply to factory operations. The remaining amounts apply to selling and administrative activities b. Inventory balances at the beginning and end of August were as follows Raw materials Work in process Finished goods August 1 August 31 $17,000 14,000 15,000 45,000 8,000 40,000