Validity of the monthly budget


The monthly cash budget that you have prepared assumes that all cash flows occur on the 15th of each month. Suppose MacAdam's outflows tend to cluster at the beginning of the month, while collections tend to be heaviest toward the end of each month. How would this affect the validity of the monthly budget? What could be done to correct any inaccuracies that might result from the mismatch of inflows and outflows?

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Finance Basics: Validity of the monthly budget
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