Pascarelli Corporation's inventory at the end of Year 2 was $132,000 and its inventory at the end of Year 1 was $160,000. Cost of goods sold amounted to $920,000 in Year 2. The company's average sale period for Year 2 is closest to: (Round your intermediate calculations to 2 decimal places.)

58 days

Explanation:

Inventory turnover = Cost of goods sold : Average inventory

= $920,000 : $146,000 = 6.30 (rounded)

Average inventory = ($132,000 + $160,000) : 2

=$292,000: 2

= $146,000

Average sale period = 365 days : Inventory turnover

= 365 days : 6.30 = 57.9

Approximately 58 days

Therefore the company's average sale period for Year 2 is closest to 58 days