Problem 6-8A (Algo) Use the inventory turnover ratio and gross profit ratio to analyze companies (LO6-7) 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 $310,000 $310,000 Cost of goods sold 99,000 249,000 Gross profit $211,000 $61,000 Average inventory $31,000 $21,000 Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio. 2. For Company 1 and Company 2, calculate the gross profit ratio. 3. After comparing the inventory turnover ratios and gross profit ratios, which company do you think is Wawa?