a. Based on these data, calculate the following for 2009 and 2008:

1. Days' sales in receivables

2. Accounts receivable turnover (gross receivables at year-end)

3. Days' sales in inventory

4. Inventory turnover (use inventory at year-end)

5. Working capital

6. Current ratio

7. Acid-test ratio

b. Comment on each ratio individually

c. 1. Describe the individual allowance consideration

2. Are some of these allowance considerations normal for most companies?

d. What would be the inventory balance at February 28, 2009, if the LIFO reserve were removed?

e. Were there material LIFO liquidations in 2009, 2008, or 2007?

f. Comment on the apparent total liquidity

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AMERICAN GREETINGS CONSOLIDATED STATEMENTS OF OPERATIONS Years ended February 28, 2009, February 29, 2008, and February 28, 2007 (Thousands of dollars except share and per share amounts) 2009 2007 1,646,399 44,339 ,690,738 809,956 618,899 226,317 S 1,730,784 45,667 1,776,451 780,771 621,478 246,722 S 1,744,798 49,492 1,794,290 826,791 627,940 253,035 Net sales Other revenue Total revenue Material, labor, and oher production costs Selling, distribution, and marketing expenses Administrative and general expenses Goodwill and other intangible assets 290,166 (1,396) (253,204) impairment 2,196 3 Other operating income net Operating (loss) income Interest expense Interest income Other nonoperating expense (income)-net (Loss) income from continuing operations (1,325) 128,805 20,006 (7,758) 89,580 34,986 (8,135) (3,282) 2.157 411 before income tax (benefit) expense Income tax (benefit) expen se (Loss) income from continuing operations (Loss) income from discontinued operations, (274,933) (47,174) (227,759) 123,968 40,648 83,320 65,411 39,938 net of tax Net (loss) income 2 440 S 42.378 (227.759 S 83.003 1.54 .53 (Loss) earnings per share- basic: (Loss) income from coing operations (Loss) income from discontinued operations Net (loss) income S(4.89) 0.69 0.04 0.73 (4.89)