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    Sales effect on cash position

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    Explain to Xtreme Toys® management how rising sales could cause a decrease in the company's cash position and provide three specific recommendations to management on ways to reduce the cash gap.

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    Decrease in cash position means increase in cash outflow is more than increase in cash inflows. The rising sales could cause a decrease in the company' cash position as it lead ...

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    The solution discusses sales effect on cash positions.