Part 1 of 2 25 boints Required Information Problem 6-8A Use the inventory tumover ratio and gross profit ratio to analyze companies (LO6-7) 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) Company 1 Company 2 Net sales $430,000 $430,000 Cost of goods sold 207,000 357,000 Gross profit $223,000 $ 73,000 Average inventory $ 43,000 $ 33,000 Problem 6-8A Part 1 Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio, Answer is complete but not entirely correct. Inventory Turnover Ratio Gross sales $$ Net sales XS Company 1 6 & 11 X 6.9 610 X Company 2 Gross sales Net sales XS XS 23 221 2 Required Information Problem 6-8A Use the inventory tumover ratio and gross profit ratio to analyze companies (L06-7) [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): Net sales Cost of goods sold Gross profit Average inventory Company 1 $430,000 2e7, eee $223,000 $ 43,000 Company 2 $43e, eee 357,600 $ 73, eee 33,000 ences Problem 6-8A Part 2 2. For Company and Company 2. calculate the gross profit ratio Gross Profit Ratio Company 1 Company 2