Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial projects, and private lawns. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that performs installation and warranty servicing in six metropolitan areas. The mission of Waterways is to manufacture quality parts that can be used for effective irrigation projects that also conserve water. By that effort, the company hopes to satisfy its customers, perform rapid and responsible service, and serve the community and the employees who represent them in each community. The company has been growing rapidly, so management is considering new ideas to help the company continue its growth and maintain the high quality of its products. Waterways was founded by Will Winkman who is the company president and chief executive officer (CEO). Working with him from the companys inception is Wills brother, Ben, whose sprinkler designs and ideas about the installation of proper systems have been a major basis of the companys success. Ben is the vice president who oversees all aspects of design and production in the company. The factory itself is managed by Todd Senter who hires his line managers to supervise the factory employees. The factory makes all of the parts for the irrigation systems. The purchasing department is managed by Helen Hines. The installation and training division is overseen by vice president Henry Writer, who supervises the managers of the six local installation operations. Each of these local managers hires his or her own local service people. These service employees are trained by the home office under Henry Writers direction because of the uniqueness of the companys products. There is a small human resources department under the direction of Sally Fenton, a vice president who handles the employee paperwork, though hiring is actually performed by the separate departments. Teresa Totter is the vice president who heads the sales and marketing area; she oversees 10 well-trained salespeople. The accounting and finance division of the company is headed by Ann Headman, who is the chief financial officer (CFO) and a company vice president; she is a member of the Institute of Management Accountants and holds a certificate in management accounting. She has a small staff of accountants, including a controller and a treasurer, and a staff of accounting input operators who maintain the financial records. A partial list of Waterways accounts and their balances for the month of November follows.

Accounts Receivable $273,900

Advertising Expenses 53,800

Cash 259,500

DepreciationFactory Equipment 16,800

DepreciationOffice Equipment 2,400

Direct Labor 41,600

Factory Supplies Used 16,900

Factory Utilities 10,100

Finished Goods Inventory, November 30 68,900

Finished Goods Inventory, October 31 72,100

Indirect Labor 47,800

Office Supplies Expense 1,700

Other Administrative Expenses 71,400

Prepaid Expenses 41,600

Raw Materials Inventory, November 30 52,700

Raw Materials Inventory, October 31 37,900

Raw Materials Purchases 184,200

RentFactory Equipment 46,900

RepairsFactory Equipment 4,500

Salaries 324,800

Sales Revenue 1,345,500

Sales Commissions 40,500

Work In Process Inventory October 31 52,200

Work In Process Inventory, November 30 42,100

WATERWAYS CORPORATION Income Statement For the Month of November, 2016 Sales Revenue Cost of Goods Sold Finished Goods Inventory, November 1 $ $ 72100 i Cost of Goods Manufactured 364100 i Cost of Goods Available for Sale 436200 i Less: Finished Goods Inventory, November 30 > $ $ Sales Commissions Salaries Operating Expenses Depreciation Office Equipment 2400 i Office Supplies Expense > 1700 i