What do you think are the major barriers to upward communication in an organization? Justify your responses with examples.Effective communication is essential to successful management and leadership functions. Explain why. Support your answer with clear examples and vocabulary from the lectures, where appropriate.

1.) Accounts officers at Xerox corporation discovered that significant errors have been made in the valuation of inventory and are worried that it might have significant impact on the net income and earnings per share. What are the possible top three effects of the errors on net income? What could have been the top two reasons behind incorrect valuation of the inventory?

2.) Identify three questions that can be answered by reviewing a firm's income statement but that cannot be answered by reviewing the firm's balance sheet or statement of stockholders' equity. Be specific.