! Required information Problem 6-8A Use the inventory turnover ratio and gross profit ratio to analyze companies (L06-7) (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): Net sales Cost of goods sold Gross profit Average inventory Company 1 $340,000 126,000 $214,000 Company 2 $340,000 276,000 $ 64,000 $ 34,000 $ 24,000 Problem 6-8A Part 1. Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio. Inventory Turnover Ratio Company 1 = Company 2 11 Problem 6-8A Part 2 2. For Company 1 and Company 2, calculate the gross profit ratio. Gross Profit Ratio Company 1 Company 2