Ratio Analysis

Selected information from Bigg Company's financial statements follows:

1. Calculate the following ratios for 2018 and 2019. Round your answers to two decimal places. 2018 2019 a. Gross profit margin b. Operating margin c. Net profit margin d. Accounts receivable turnover 2. Are operations improving or worsening? Ratio Analysis Selected information from Bigg Company's financial statements follows Fiscal Year Ended December 31 2018 (in thousands) 2019 2017 Gross sales $2,004,719 4,811 2,406 $1,997,502 621,463 $1,376,039 577,369 $798,670 15,973 $814,643 $1,937,021 $1,835,987 4,406 2,203 $1,930,048 $1,829,378 660,955 $1,310,201 $1,168,423 583,555 $714,975 $584,868 (6,250) (8,773) $708,725 $576,095 Less: Sales discounts 4,649 2,324 Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expenses) Net income 619,847 595,226 At December 31 2018 (in thousands) 2019 2017 Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable $201,290 2,516 $198,774 $195,427 $182,642 2,192 $192,691 $180,450 2,736