Question

Part 1 and 2 of the same problem, not separate problems
Required Information Part 1 of 2 [The following information applies to the questions displayed below.] Wawa Food Markets is a convenience store chain located primarily in the Northeast. The company sells gas, candy bars, drinks, and other grocery-related items. St. Jude Medical Incorporated sells medical devices related to cardiovascular needs. Suppose a local Wawa Food Market and St. Jude sales office report the following amounts in the same year (company names are disguised): points Company 1 $423,88à 198,00 $222,690 Net sales Cost of goods sold Gross profit Average inventory Company 2 $420.eae 348, ce $ 72,620 eBook $ 42,089 $ 32.ee Print References Required: 1. For Company 1 and Company 2. calculate the inventory turnover ratio. Inventory Turnover Ratio Company 1 Company 2

Answer 1

Inventory Turnover ratio Company 1 Cost of goods sold Average Inventory 198000 42000 - 4.7 Inventory Turnover ratio Company 2 Cost of goods sold Average Inventory 348000 32000 10.9 Gross profit Ratio Company 1 Gross profit Net sales 222000 420000 52.9% Gross profit Ratio Company 2 Gross profit Net sales 72000 420000 17.1%