hi tutor can you advise Abby on her business? I need detailed analysis and recommendations which tie into the specific issues raised in this case.

Last January, Abby started a new business named Abby's Blinds, Curtains, & Dining Essentials, orABC&DEfor short. In her business, Abby, who has always loved arts and crafts, designs unique items which are eye-catching highlights around her customers' homes. She started her business selling to friends and neighbors out of her garage, and demand quickly spread to the point where everything she made sold within a day.

Issues for recommendation and analysis:-

1) A website would cost $3,000 this year and $2,000 per year after that. Abby feels that having a website would increase her top sales volume projection by 50%. However, she would need a bigger space to sell in, so fixed costs would jump by $450 per month on top of everything else.

Abby fears that online retailing might result in major growth requiring additional financing. To raise funds, she would be willing to sell a 30% stake in the business (equally taken from business partners at the time) for $15,000 and promise to payout 15% of the business's future profits as dividends. She would also be willing to borrow $15,000 at a rate of 7% per year. She wonders what the impact of each financing option is, including the effect on ratios such as earnings per share and debt to assets.

2) Also, Abby invested a small amount of money in cryptocurrency which boosted her personal income. She is wondering if she can report the gain as part of her business profits to secure equity and debt financing. She wants to know specifically the accounting concepts which relate to recognition of capital gains and inclusion of income in a business.

3) On January 1st of year 2, Abby noticed that her cash records don't quite match up with the bank statement. Furthermore, she noticed that her deposits on her books total $6,200 while the bank statements add up to $6,400. Her issued cheques add up to $5,100 but her bank has only withdrawn a total of $4,200. Abby wants an explanation of these issues and what she should be doing to resolve them.

4) Finally, Abby just purchased some new equipment for $2,500. She plans to use the equipment heavily immediately, but perhaps not later- it's possible she upgrades to bigger and better machinery which would result in this current equipment being used less heavily. Abby is wondering if she should expense this equipment in the month of purchase and how it should be reported on her balance sheet.