Assume you are opening a Bed Bath & Beyond store. To financethe business you nee

Assume you are opening a Bed Bath & Beyond store. To financethe business you need a $500000 loan and your banker requires aset of forecasted financial statement. Assume you are preparing thestatements and must make some decisions about how to do theaccounting for the business.Indicate the type of inventory system you would use and state yourreasoning.Provide examples to show how you would compute net purchases andnet sales including how you would treat the cost of transportationin.Discuss the purpose and frequency of physical inventory counts forthis business.Assume that inventory costs are rising.Which inventory costing method would you use to maximize netincome?Which inventory costing method would you use if you wanted to paythe least amount of income tax?