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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): Net sales Cost of goods sold Gross profit Average inventory Company 1 $ 480,000 252,000 $ 228,000 $ 48,000 Company 2 $ 480,000 402,000 $ 78,000 $ 38,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For Company 1 and Company 2, calculate the inventory turnover ratio.

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): Net sales Cost of goods sold Gross profit Average inventory Company 1 $ 480,000 252,000 $ 228,000 $ 48,000 Company 2 $ 480,000 402,000 $ 78,000 $ 38,000 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For Company 1 and Company 2, calculate the inventory turnover ratio.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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): Net sales Cost of goods sold Gross profit Average inventory Company 1 $ 480,000 252,000 $ 228,000 $ 48,000 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? Required 1 Company 2 $ 480,000 402,000 $ 78,000 $ 38,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3 For Company 1 and Company 2, calculate the inventory turnover ratio.
Transcribed Image Text: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): Net sales Cost of goods sold Gross profit Average inventory Company 1 $ 480,000 252,000 $ 228,000 $ 48,000 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? Required 1 Company 2 $ 480,000 402,000 $ 78,000 $ 38,000 Complete this question by entering your answers in the tabs below. Required 2 Required 3 For Company 1 and Company 2, calculate the inventory turnover ratio.
Required 1 Required 2 Required 3 For Company 1 and Company 2, calculate the inventory turnover ratio. Inventory Turnover Ratio Company 1 Company 2 Numerator or Denominator Required 1 Required 2 Required 3 Company 1 Complete this question by entering your answers in the tabs below. Company 2 For Company 1 and Company 2, calculate the gross profit ratio. Gross Profit Ratio Numerator or Denominator Amounts < Required 1 Required 1 Required 2 Required 3 Amounts < Required 1 Complete this question by entering your answers in the tabs below. < Required 2 Required 2 > After comparing the inventory turnover ratios and gross profit ratios, which company do you think is Wawa? After comparing the inventory turnover ratios and gross profit ratios, which company do you think is Wawa? Required 3 > Required 3 >
Transcribed Image Text:Required 1 Required 2 Required 3 For Company 1 and Company 2, calculate the inventory turnover ratio. Inventory Turnover Ratio Company 1 Company 2 Numerator or Denominator Required 1 Required 2 Required 3 Company 1 Complete this question by entering your answers in the tabs below. Company 2 For Company 1 and Company 2, calculate the gross profit ratio. Gross Profit Ratio Numerator or Denominator Amounts < Required 1 Required 1 Required 2 Required 3 Amounts < Required 1 Complete this question by entering your answers in the tabs below. < Required 2 Required 2 > After comparing the inventory turnover ratios and gross profit ratios, which company do you think is Wawa? After comparing the inventory turnover ratios and gross profit ratios, which company do you think is Wawa? Required 3 > Required 3 >
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