Required information

Skip to question

[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	$	490,000			$	490,000
Cost of goods sold		261,000				411,000
Gross profit	$	229,000			$	79,000
Average inventory	$	49,000			$	39,000

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

Inventory Turnover Ratio Company 1 = Company 2 =