Days' sales in inventory: A. focuses on average inventory rather than ending inventory. B. shows...

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Accounting

Days' sales in inventory:

A. focuses on average inventory rather than ending inventory.

B. shows the buffer against out-of-stock inventory.

C. Is a substitute for the acid test ratio.

D. Is calculated by dividing cost of goods sold by ending inventory.

E. Is used to measure solvency.

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