The following information is from the 2009 annual report of American Greetings Corporation (all dollars in thousands).

The following information comes from the notes to the company's financial statements. Finished products, work in process, and raw material inventories are carried at the lower of-cost-or-market. The last-in, first-out (LIFO) cost method is used for approximately 75% of the domestic inventories in 2009 and approximately 70% in 2008. The foreign subsidiaries principally use the first-in, first-out method. Display material and factory supplies are carried at average-cost.Instructions(a) Define each of the following: finished goods, work in process, and raw materials.(b) What might be a possible explanation for why the company uses FIFO for its nondomestic inventories?(c) Calculate the company's inventory turnover ratio and days in inventory for 2008 and 2009. (2007 inventory was $182,618.) Discuss the implications of any change in the ratios.(d) What percentage of total inventory does the 2009 LIFO reserve represent? If the company used FIFO in 2009, what would be the value of its inventory? Do you consider this difference a "material" amount from the perspective of an analyst? Which value accurately represents the value of the company's inventory?(e) Calculate the company's 2009 current ratio with the numbers as reported, then recalculate after adjusting for the LIFOreserve.

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Feb. 28, Feb. 29, 2009 2008 Inventories Finished goods Work in process Raw materials and supplies $232,893 $244,379 10,516 43,861 7,068 49,937 289,898 86,025 298,756 82,085 Less: LIFO reserve Total (as reported) $216,671 $203,873 $809,956 $561,395 $343,405 Cost of goods sold Current assets (as reported) Current liabilities $780,771 $669,340 $432,321