The Operating Cycle Two Wheeler Cycle Shop buys all of its bikes from one manufa
ID: 2505408 • Letter: T
Question
The Operating Cycle Two Wheeler Cycle Shop buys all of its bikes from one manufacturer, Baxter Bikes. On average, bikes are on hand for 45 days before Two Wheeler sells them. The company sells some bikes for cash but also extends credit to its customers for 30 days. On average, what is the minimum length of Two Wheeler's operating cycle? the maximum length? Explain why the operating cycle for Baxter, the manufacturer of the bikes, would normally be longer than that of Two Wheeler, the retailer.
Explanation / Answer
The operating cycle 2 wheeler cycle shop buys all of its bikes from one manufaturer baxter bikes.
on avg bikes are on hand for 45 days before two wheeler sells them.
the company sells some bikes for cash but also extends credit to its customers for 30 days.
on avg the maxm length of 2 wheelers is 45 dys.
the maxm lenth 75dys for extends credits.
the operating cycle for baxter, the manufaturer of the bikes, would noramlly be longer than that of 2 wheeler bcz of for selling more bikes from the cycle operating. by selling more than more cycle credits are also increasing .
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