Payless ShoeSource and Dillards both offer mens formal footwear. Payless offers lower- to middle-priced footwear, whereas Dillards offers more specialized, higher-end footwear. The average price for a pair of shoes in Payless may be about $50, whereas the average price in Dillards may be about $175. The types of shoes offered by Dillards are not sold by many other stores. Suppose a Payless store and a Dillards store report the following amounts for mens shoes in the same year (company names are disguised):

	Company 1	Company 2
Net sales	$200,000	$200,000
Cost of goods sold	130,000	165,000
Gross profit	$70,000	$ 35,000
Average inventory	$ 35,000	$ 20,000

1.

For Company 1 and Company 2, calculate the inventory turnover ratio.

2.	For Company 1 and Company 2, calculate the gross profit ratio.