Part 1: Perpetual vs. Periodic Inventory Methods In each of the following situations, identify which inventory method the company is using: Perpetual or Periodic 1. Healthy Foods records cost of goods sold once per year before the financial statements are created. 2. Beauty Inc. fears that an employee is stealing beauty products after its physical inventory count revealed an inventory balance that was $700 lower than the accounting records show. 3. Inventive Technology has an inventory system that automatically updates the accounting records every time a sale is made. 4. Tees Express is a small business that cannot afford to implement an expensive inventory system. 5. Tom's Hat's inventory system cannot identify shrinkage