Internal Controls [Provide suggestions for a simple system of internal controls to assist the owners in protecting assets and ensuring accuracy in financial data. Consider additional rules to support the potential for adding merchandise and other assets with business growth/expansion.]

Looking to the Future [In response to the owners request for additional information and support for future growth, discuss accounting considerations associated with acquiring additional long-term/fixed assets and adding merchandise inventory. How will the company account for the costs of long-term investments? How will the method of depreciation be determined? (Expand on two different depreciation methods to demonstrate the 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.)]