[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 $400,000 Company 2 $400,000 Net sales Cost of goods sold 180,000 330,000 Gross profit $220,000 $ 70,000 Average inventory $ 40,000 $ 30.000 Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio.
[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 $400,000 Company 2 $400,000 Net sales Cost of goods sold 180,000 330,000 Gross profit $220,000 $ 70,000 Average inventory $ 40,000 $ 30.000 Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$400,000
Company 2
$400,000
Net sales
Cost of goods sold
180,000
330,000
Gross profit
$220,000
$ 70,000
Average inventory
$ 40,000
$ 30,000
6.
Required:
1. For Company 1 and Company 2, calculate the inventory turnover ratio.
Inventory Turnover Ratio
Company 1
Company 2
II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a2072a9-7aab-4b43-b0e1-0ef1854c9c71%2F1c27432f-736e-4ed2-8af9-e9af973d9587%2Fuch2e0n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
$400,000
Company 2
$400,000
Net sales
Cost of goods sold
180,000
330,000
Gross profit
$220,000
$ 70,000
Average inventory
$ 40,000
$ 30,000
6.
Required:
1. For Company 1 and Company 2, calculate the inventory turnover ratio.
Inventory Turnover Ratio
Company 1
Company 2
II
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