Staples, Inc., operates a chain of office supply stores throughout the United States. For 2004 and 2003, Staples reported (in thousands) the following operating data:

a. Compute the percent of gross profit and operating income to net sales. Round to one decimal place.
b. Based upon (a), comment on Staples€™ operating performance in 2004 as compared to2003.

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Net sales Cost of goods sold Gross profit Operating income 2004 $14,448,378 10,343,643 4,104,735 1,125,873 2003 S13,181,222 9,559,123 3,622,099 $ 798,288