chase runs a sandwich shop she is compiling her end of year financial statements and 611271

Chase runs a sandwich shop. She is compiling her end-of-year financial statements and wants your advice on a number of items:

(a)She has a high degree of customer loyalty and wants to include this within the value of the business overall. She proposes including a value for goodwill on her balance sheet – in order to represent the estimated selling price of the business, which would be higher than the original cost of the business.

(b)She thinks she can boost her profits if she delays some of her payments.

(c)She uses her own car to make some deliveries to business customers. At present she includes none of these costs as business expenditure as it is her private car.

Advise Chase on whether her accounting treatment is correct. Refer to any relevant accounting concepts as part of your recommendations.