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 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. $276,700 Accounts Receivable Advertising Expenses 54,300 Cash 258,300 16,800 2,300 41.700 16,800 10,200 Depreciation-Factory Equipment Depreciation-Office Equipment Direct Labor Factory Supplies Used Factory Utilities Finished Goods Inventory, November 30 Finished Goods Inventory, October 31 Indirect Labor Office Supplies Expense Other Administrative Expenses 69,100 73,300 47.900 1,600 72,100 Other Administrative Expenses 72,100 41,600 53,100 37,900 185,200 46,500 Prepaid Expenses Raw Materials Inventory, November 30 Raw Materials Inventory, October 31 Raw Materials Purchases Rent-Factory Equipment Repairs-Factory Equipment Salaries Sales Revenue Sales Commissions Work In Process Inventory October 31 Work In Process Inventory, November 30 4,500 326,900 1,355,000 40,500 52,200 42,000 estion 1 of 1 WATERWAYS CORPORATION Cost of Goods Manufactured Schedule For the Month of November, 2016 Work in Process Inventory, November 1 Direct Materials 37.900 Raw Materials Inventory, November 1 185.200 Raw Material Purchases 223.100 Total Raw Materials Available for Use 53.100 Less Raw Materials Inventory, November 30 185.200 Direct Materials Used 41.700 Direct Labor Manufacturing Overhead Depreciation - Factory Equipment Factory Supplies Used Factory Utilities Indirect Labor Nool Rent-Factory Equipment Repairs --Factory Equipment Total Factory Overhead Total Manufacturing Costs Total Cost of Work in Process Less Work in Process Inventory, November 30 Cost of Goods Manufactured NANNA I DOOD WATERWAYS CORPORATION Income Statement For the Month of November, 2016 Sales Revenue Cost of Goods Sold Finished Goods Inventory, November 1 Cost of Goods Manufactured HOT! Cost of Goods Available for Sale Less Finished Goods Inventory, November 30 Cost of Goods Sold Gross Profit Operating Expenses A list of accounts and their values are given above. From this information, prepare an income statement WATERWAYS CORPORATION Income Statement For the Month of November, 2016 $ ovember 1 DOOD kale Is Inventory. November 30 Gross Profit Operating Expenses Selling Expenses Advertising Expenses Sales Commissions Total Selling Expenses Administrative Expenses LIDO HO Depreciation - Office Equipment Other Administrative Expenses Salaries Office Supplies Expense Total Administrative Experses Salaries Office Supplies Expense Total Administrative Expenses Total Operating Expenses Net Income/Loss) LILULU DO IC WATERWAYS CORPORATION Balance Sheet (partial) November 30, 2016 Assets Current Assets $ Cash NO Accounts Receivable Inventories Finished Goods Inventory Work in Process inventory Raw Materials inventory III INI Prepaid Expenses Total Current Assets estion 1 of 1 Cash Accounts Receivable Inventories Finished Goods Inventory Work in Process Inventory Raw Materials Inventory DOO IDE Prepaid Expenses Total Current Assets