In response to the owners request for additional information and support for future growth, discuss accounting considerations associated with the acquisition of additional long term/fixed assets, and the addition of merchandise inventory. How will the company account for the costs of long-term assets? How will the method of depreciation be determined? (Expand on 2 different methods of depreciation to demonstrate ideal application). How does accounting change with the addition of merchandise inventory? How will it be determined which inventory costing method to apply? (Discuss how the FIFO, LIFO, and Average methods differ and provide examples of the types of merchandising scenarios that would be ideally applicable in each case

A Company Balance Sheet As of March 31, 20XX \begin{tabular}{|l|r|} \hline Assets \\ \hline Current Assets: & \\ \hline Cash & 139,465.00 \\ \hline Supplies & 215.00 \\ \hline Accounts Receivable & 3,500.00 \\ \hline & \\ \hline & \\ \hline Total Current Assets & 143,180.00 \\ \hline \end{tabular} Liabilities and Owners' Equity Current Liabilities: \begin{tabular}{|l|r|} \hline Utilities & 135.00 \\ \hline Wages Payable & 275.00 \\ \hline Total Current Liabilities & 410.00 \\ \hline Long Term Liabilities: & 125,000.00 \\ \hline Loan & 125,000.00 \\ \hline Total Long Term Liabilities: & \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Total Liabilities: & 125,410.00 \\ \hline \end{tabular} Owner's Equity \begin{tabular}{|l|r|} \hline & 20,474.17 \\ \hline & \\ \hline & \\ \hline Total Equity & 20,474.17 \\ \hline \end{tabular} Non-Current Assets: \begin{tabular}{|l|r|} \hline Furniture & 2,750.00 \\ \hline Accumulated Depreciation & (45.83) \\ \hline Total Non Current/Fixed Assets & 2,704.17 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Total Assets: & 145,884.17 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Total Liabilities \& Equity & 145,884.17 \\ \hline \end{tabular}