Selected information from Bigg Companys financial statements follows. Required: 1. Calculate the following ratios for 2009 and

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Selected information from Bigg Company€™s financial statements follows.

Selected information from Bigg Company€™s financial statements fo

Required:
1. Calculate the following ratios for 2009 and 2010:
a. Gross profit ratio
b. Operating margin ratio
c. Net profit margin ratio
d. Accounts receivable turnover
2. For each of the first three ratios listed above, provide a plausible explanation for any differences that exist (e.g., Why is the net profit margin higher or lower than it was the previous year, etc.).
3. Explain what each ratio attempts to measure. Make an assessment about Bigg Company based upon the ratios you have calculated. Are operations improving orworsening?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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