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The monthly cash budget you have prepared assumes that all cash flows occur on the 15th of each month. Suppose Alpine Wear's outflows are paid at the beginning of the month, while collections (cash inflows) are received towards the end of each month.

How would this affect the validity of the monthly budget and short-term cash needs?

What could be done to correct any inaccuracies that might result from this mismatch of daily inflows and outflows (having to make cash payments before

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Financial Management, Finance

Category:- Financial Management
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