Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018 2017 (in thousands) Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts 4,811 4,649 4,406 Less: Sales returns and allowances 2,406 2,324 2,203 Net sales $1,997,502 $1,930,048 $1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit $1,376,039 $1,310,201 $1,168,423 Operating expenses 577,369 595,226 583,555 Operating income $798,670 $714,975 $584,868 Other income (expenses) 15,973 (6,070) (8,773) Net income $814,643 $708,905 $576,095 At December 31 2019 2018 2017 (in thousands) Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts 2,516 2,736 2,192 Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019. Round your answers to two decimal places. 2018 2019 a. Gross profit margin 67.88 V % 68.89 v % b. Operating margin 37.04 V % 39.98 V % c. Net profit margin 36.77 X % 40.78 V % d. Accounts receivable turnover 10.34 V 10.21 V
Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018 2017 (in thousands) Gross sales $2,004,719 $1,937,021 $1,835,987 Less: Sales discounts 4,811 4,649 4,406 Less: Sales returns and allowances 2,406 2,324 2,203 Net sales $1,997,502 $1,930,048 $1,829,378 Cost of goods sold 621,463 619,847 660,955 Gross profit $1,376,039 $1,310,201 $1,168,423 Operating expenses 577,369 595,226 583,555 Operating income $798,670 $714,975 $584,868 Other income (expenses) 15,973 (6,070) (8,773) Net income $814,643 $708,905 $576,095 At December 31 2019 2018 2017 (in thousands) Accounts receivable $201,290 $195,427 $182,642 Less: Allowance for doubtful accounts 2,516 2,736 2,192 Net accounts receivable $198,774 $192,691 $180,450 Required: 1. Calculate the following ratios for 2018 and 2019. Round your answers to two decimal places. 2018 2019 a. Gross profit margin 67.88 V % 68.89 v % b. Operating margin 37.04 V % 39.98 V % c. Net profit margin 36.77 X % 40.78 V % d. Accounts receivable turnover 10.34 V 10.21 V
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Selected information from Bigg Company's financial statements follows:
Fiscal Year Ended December 31
2019
2018
2017
(in thousands)
Gross sales
$2,004,719
$1,937,021 $1,835,987
Less: Sales discounts
4,811
4,649
4,406
Less: Sales returns and allowances
2,406
2,324
2,203
Net sales
$1,997,502
$1,930,048 $1,829,378
Cost of goods sold
621,463
619,847
660,955
Gross profit
$1,376,039
$1,310,201 $1,168,423
Operating expenses
577,369
595,226
583,555
Operating income
$798,670
$714,975
$584,868
Other income (expenses)
15,973
(6,070)
(8,773)
Net income
$814,643
$708,905
$576,095
At December 31
2019
2018
2017
(in thousands)
Accounts receivable
$201,290
$195,427
$182,642
Less: Allowance for doubtful accounts
2,516
2,736
2,192
Net accounts receivable
$198,774
$192,691
$180,450
Required:
1. Calculate the following ratios for 2018 and 2019. Round your answers to two decimal places.
2018
2019
a. Gross profit margin
67.88
%
68.89
%
b. Operating margin
37.04
39.98
c. Net profit margin
х %
36.77
40.78
%
d. Accounts receivable turnover
10.34
10.21
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c56831c-b6bf-4c14-bef3-4873954c280a%2F4f9a99dc-56f0-4d12-a3e9-66d9819d7dbc%2Fp3eixoh_processed.png&w=3840&q=75)
Transcribed Image Text:Selected information from Bigg Company's financial statements follows:
Fiscal Year Ended December 31
2019
2018
2017
(in thousands)
Gross sales
$2,004,719
$1,937,021 $1,835,987
Less: Sales discounts
4,811
4,649
4,406
Less: Sales returns and allowances
2,406
2,324
2,203
Net sales
$1,997,502
$1,930,048 $1,829,378
Cost of goods sold
621,463
619,847
660,955
Gross profit
$1,376,039
$1,310,201 $1,168,423
Operating expenses
577,369
595,226
583,555
Operating income
$798,670
$714,975
$584,868
Other income (expenses)
15,973
(6,070)
(8,773)
Net income
$814,643
$708,905
$576,095
At December 31
2019
2018
2017
(in thousands)
Accounts receivable
$201,290
$195,427
$182,642
Less: Allowance for doubtful accounts
2,516
2,736
2,192
Net accounts receivable
$198,774
$192,691
$180,450
Required:
1. Calculate the following ratios for 2018 and 2019. Round your answers to two decimal places.
2018
2019
a. Gross profit margin
67.88
%
68.89
%
b. Operating margin
37.04
39.98
c. Net profit margin
х %
36.77
40.78
%
d. Accounts receivable turnover
10.34
10.21
>
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