Problem 5-87A (Algorithmic) Ratio Analysis Selected information from Bigg Company's financial statements follows: Fiscal Year Ended December 31 2019 2018 2017 (in thousands) $1,937,021 $1,835,987 4,649 4,406 $2,004,719 4,811 2,406 2,324 2,203 Gross sales Less: Sales discounts Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expenses) Net income $1,997,502 621,463 $1,930,048 $1,829,378 619,847 660,955 $1,310,201 $1,168,423 595,226 583,555 $1,376,039 577,369 $798,670 15,973 $814,643 $714,975 (6,070) $708,905 $584,868 (8,773) $576,095 At December 31 2019 2017 Accounts receivable Less: Allowance for doubtful accounts $201,290 2,516 2018 (in thousands) $195,427 2,736 $ 192,691 $182,642 2,192 Net accounts receivable $198,774 DR $180,450 COCOCCITOVINCES ZOO ST TOUR $1,997,502 621,463 $1,930,048 $1,829,378 619,847 660,955 Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expenses) $1,376,039 577,369 $1,310,201 $1,168,423 595,226 583,555 $798,670 $714,975 $584,868 15,973 Net income $814,643 (6,070) $708,905 (8,773) $576,095 At December 31 2019 2018 (in thousands) 2017 Accounts receivable Less: Allowance for doubtful accounts Net accounts receivable $ 201,290 2,516 $195,427 $182,642 2,192 2,736 $198,774 Required: $192,691 $180,450 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