The president asked you to check over the end make a recommendation about whether Chapter 2 Swift Company and on March of the year. After five months of starp management expected to complet during August, the most recent month. Mange disappointed, however, when the income for August also showed a loss. August statement follows: PROBLEM 2-6 Preparing Financial Statements for Manufacturer 2.05 - CCS, 10; L06-CCM. 131 $530,000 SWIFT COMPANY Sul For the Mehed Aug 31 Sales Les Operating expenses Indirect labour cost $9.000 Linear 25,000 Direct labour cos 80,000 Depreciation factory equipment 21.000 Raw materials purchased 226.000 Depreciation, sales equipment 8.000 Insurance 8.000 Rent on facilities 80.000 Selling and administrative salaries Advertising 22.000 65,000 $44.000 $14.000 The company's controller med mot Samaswant in the controller's office, prepared the income statement above Sam has had experience in manufacturing operations. After seeing the 514,000 loss for Augas Swift's presiden diese we'd be profitable within six months, but ou ths are up and this is for Auguse is even worse than July's. I think it's time to start looking women to be out the company's tweet, within a few months there won't be any assets well. By the way. I don't see any reason to look for a controller. We'll just limp along with Sam for the time being Additional information about the company follow Approximutely B0% of the utilities com and son of the insurance apply to factory operations The remaining outpply to selling and administrative activities very balances the beginning and end of Auge were as follows Roma Work in proces Finished goods A1 $31.000 August 31 $78.000 10,000 55,000 50,000 county one of the content facilities applies to fetary operations, the remainder applies to selling and administrative activitis should look for a buyer is its Required: 1. As one step in gathering data for a recommendation to the president, prepare a schedule of cost of goods manufactured in good form for August. 2. As a second step, prepare a new income statement for August. 3. On the basis of your statements prepared in Requirements (1) and (2), would you recommend that the company look for a buyer