Tory, Hachey, and Wedunn, three young lawyers who have joined together
to open a law practice, are struggling to manage their cash flow. They have not yet built up enough clientele and revenues to support the cost of running their legal practice. Initial costs, such as advertising and renovations to the premises, all result in outgoing cash flow at a time when little is coming in! Tory, Hachey, and Wedunn have not had time to establish a billing system because most of their clients' cases have not yet reached the courts and the lawyers did not think it would be right to bill them until "results were achieved." Unfortunately, Tory, Hachey, and Wedunn's suppliers do not feel the same way. Their suppliers expect them to pay their accounts payable within a few weeks of receiving their bills. So far, there has not even been enough money to pay the three lawyers, and they are not sure how long they can keep practising law without getting some money into their pockets!
Provide suggestions for Tory, Hachey, and Wedunn to improve its cash management practices, in particular with respect to accelerating the collection of its receivables and delaying the payment of its liabilities.