It doesn't have to be extremely long. Just a general idea would be nice.

Case 4 Konopaski Importing Inc. Konopaski Importing Inc. (Konopaski) imports products to Canada from countries around the world. The company has been owned and operated by Michael Konopaski since it began business 25 years ago. Michael has decided to sell the business to Jacob Adessky and the two parties are negotiating the final terms of the deal. Jacob has agreed to $1.5 million for Konopaski plus the carrying amount of inventory on the day before the deal closes, determined using International Financial Reporting Standards. Inven- tory is by far the largest asset on Konopaski's balance sheet. Konopaski's year end is December 31 and the deal is to close on March 31. Jacob has asked for your advice about how to deal with a number of inventory transactions that he thinks may have an impact on the carrying amount of the inventory and the amount he will pay for Konopaski. Jacob has provided you with the following information about Konopaski's inventory: 1. Konopaski uses FIFO (first-in, first-out) as its cost formula for inventory. 2. Konopaski last counted its inventory on December 31. Michael Konopaski wants to use the ac- counting records to update the December 31 count to the March 31 closing date. 3. Michael Konopaski uses the inventory control system to track inventory and determine the timing and amount of new orders. When Michael determines that an item is slow-moving, he lowers the price until he can find buyers who will purchase it. These items are accounted for when they are sold. 4. On March 31, Konopaski recorded a sale to a major customer. The customer was to pick up the goods before the end of business on March 31 but was unable to do so because of mechanical prob- lems with their truck. The goods were picked up on April 1. 5. Konopaski often receives discounts from suppliers when it buys large quantities over the course of a year. When a discount is received, Konopaski reduces accounts payable and cost of goods sold in the period the discount is granted. 6. Konopaski usually has $10,000 to $20,000 of inventory held on consignment by customers. Required Prepare a report to Jacob Adessky explaining how you think the inventory issues should be accounted for. Be sure to explain the impact the existing treatment will have on the carrying amount of the inven- tory and the impact your recommendation will have. Case 4 Konopaski Importing Inc. Konopaski Importing Inc. (Konopaski) imports products to Canada from countries around the world. The company has been owned and operated by Michael Konopaski since it began business 25 years ago. Michael has decided to sell the business to Jacob Adessky and the two parties are negotiating the final terms of the deal. Jacob has agreed to $1.5 million for Konopaski plus the carrying amount of inventory on the day before the deal closes, determined using International Financial Reporting Standards. Inven- tory is by far the largest asset on Konopaski's balance sheet. Konopaski's year end is December 31 and the deal is to close on March 31. Jacob has asked for your advice about how to deal with a number of inventory transactions that he thinks may have an impact on the carrying amount of the inventory and the amount he will pay for Konopaski. Jacob has provided you with the following information about Konopaski's inventory: 1. Konopaski uses FIFO (first-in, first-out) as its cost formula for inventory. 2. Konopaski last counted its inventory on December 31. Michael Konopaski wants to use the ac- counting records to update the December 31 count to the March 31 closing date. 3. Michael Konopaski uses the inventory control system to track inventory and determine the timing and amount of new orders. When Michael determines that an item is slow-moving, he lowers the price until he can find buyers who will purchase it. These items are accounted for when they are sold. 4. On March 31, Konopaski recorded a sale to a major customer. The customer was to pick up the goods before the end of business on March 31 but was unable to do so because of mechanical prob- lems with their truck. The goods were picked up on April 1. 5. Konopaski often receives discounts from suppliers when it buys large quantities over the course of a year. When a discount is received, Konopaski reduces accounts payable and cost of goods sold in the period the discount is granted. 6. Konopaski usually has $10,000 to $20,000 of inventory held on consignment by customers. Required Prepare a report to Jacob Adessky explaining how you think the inventory issues should be accounted for. Be sure to explain the impact the existing treatment will have on the carrying amount of the inven- tory and the impact your recommendation will have