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 company's inception is Will's brother, Ben, whose sprinkler designs and ideas about the installation of proper systems have been a major basis of the company's 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 Writer's direction because of the uniqueness of the company's 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 $276,500 Advertising Expenses 53,500 Cash 258,100 Depreciation-Factory Equipment 16,700 Depreciation-Office Equipment 2,300 Direct Labor 42,000 Factory Supplies Used 16,700 Factory Utilities 10,300 Finished Goods Inventory, November 30 69,000 Finished Goods Inventory, October 31 72,600 Indirect Labor 47,800 Office Supplies Expense 1,600 Other Administrative Expenses 72,100 Prepaid Expenses 41,400 Raw Materials Inventory, November 30 53,200 Raw Materials Inventory, October 31 37,700 Raw Materials Purchases 185,500 Rent-Factory Equipment Repairs-Factory Equipment Salaries 47,300 4,500 323,300 Sales Revenue Sales Commissions 1,357,300 40,600 Work In Process Inventory October 31 Work In Process Inventory, November 30 53,100 41,600