Question 15 (0.16 points) Days' sales in inventory: Shows the buffer against out-of-stock inventory. Focuses on average inventory rather than ending inventory. Is used to measure solvency. Is calculated by dividing cost of goods sold by ending inventory. Is a substitute for the acid-test ratio. The inventory turnover ratio is calculated as: Cost of goods sold divided by average merchandise inventory. Sales divided by cost of goods sold. G Ending inventory divided by cost of goods sold. Cost of goods sold divided by ending inventory. Cost of goods sold divided by ending inventory times 365