a. Based on these data, calculate the following for 2011 and 2010:

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, 2011 if the LIFO reserve were removed?

e. Were there material LIFO liquidations in 2011, 2010 or 2009?

f. Comment on the apparent total liquidity.