00 Decision Case 6-1 Assume you are opening a Bed Bath & Beyond store. To finance the busi- ness, you need a $500,000 loan, and your banker requires a set of forecasted financial state- ments. Assume you are preparing the statements and must make some decisions about how to do the accounting for the business. Requirements Answer the following questions (refer to Chapter 5 if necessary): 1. Which type of inventory system will you use? Perpetual or Periodic? Give your reason. 2. Show how to compute net purchases (see the vocabulary list in Chapter 5 for the definition of "net purchases") and net sales. How will you treat the cost of freight in? 3. How often do you plan to do a physical count of inventory on hand? What will the physi- cal count accomplish? 4. Inventory costs are rising. Which inventory costing method would have the effect of a. maximizing net income? b. paying the least amount of income tax