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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
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[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 =
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