I have two questions. First let me explain that I've just come back to work after surgery, so the changes that have taken place in my 25 person office are a bit overwhelming and these are the two things i can't seem to remember or grasp. while I was out, the vehicle we had before to deliver items went out completely. Since one of the owners also owns a few dealerships, they decided to lease a vehicle from his dealership. I know the vehicle we had before will need to finish being depreciated, but then how do I account for the lease????

Also, right before I left an inventory was completed. The net difference in Inventory was 0.58%. To me this is indicitive of a stable inventory, which would enable the purchases over that period to equal the Cost of Goods Sold. However, a financial advisor doesn't like the swing from one month to the next based on purchases (which is mostly due to when the goods are ordered for cancer patients. His proposal is to have all the purchases go to inventory, and then only take out of inventory 80% of sales. At the end of the year, then to reconcile Inventory and then take the hit at that point in COGS. I think this is about the stupidest thing in the world to do. Am I wrong????