Hi, I need help answering the following question. I have attached the balance sheet below.

1. Identify a reason why Inventory has changed over time? Is this a good or bad thing?

4. Which depreciation method does Witness Fitness use? How can you tell? [2 marks]

   1. Declining method

   2. Double declining method

   3. Moving average cost

   4. Straight Line

   5. FIFO

4. Which inventory costing method would you recommend WitFit to use? Why?

   1. Declining method [2 marks]

2. Double declining method

3. Moving average cost

4. Straight line

5. FIFO

Thank You!

ASSET 14,998.50 100.00 15,098.50 Current Assets Bank Bank:Petty Cash Bank:Net Accounts Receivable Allowance for Doubtful Accounts Net Accounts Receivable Prepaid Insurance Supplies Total Current Assets 8,920.68 -916.00 LIABILITY 8,004.68 3,870.00 816.21 27,789.39 Current Liabilities Accounts Payable Bank Loan Payable C.P.P. Payable E.I. Payable Employees' Income Tax Payable HST Payable Total Current Liabilities 20,292.78 95,000.00 1,385.58 653.79 2,030.27 - 192.83 119,169.59 Inventory Assets Merchandise Inventory Total Inventory Assets 25,099.23 25,099.23 TOTAL LIABILITY 119,169.59 107,393.68 -10,600.00 EQUITY 96,793.68 Capital Assets Fitness Equipment Acc. Dep./Fitness Equipment Net Fitness Equipment Furniture and Equipment Acc. Dep./Furn. & Equipment Net Furniture and Equipment Store Equipment Acc. Dep./Store Equipment Net Store Equipment Total Capital Assets 14,720.88 -2.700.00 12.020.88 Equities Common Stock Retained Earnings Current Earnings Total Equities 75,000.00 -9,490.05 - 12,655.63 52,854.32 12,570.73 -2.250.00 10,320.73 119.135.29 TOTAL EQUITY 52,854.32 TOTAL ASSET 172.023.91 LIABILITIES AND EQUITY 172,023.91