How does improve the cash management practices

Assignment Help Accounting Basics

Reference no: EM131828412

Question: Lance, Art, and Wayne have joined together to open a law practice but are struggling to manage their cash flow. They haven't yet built up sufficient clientele and revenues to support their legal practice's ongoing costs. Initial costs, such as advertising, renovations to their premises, and the like, all result in outgoing cash flow at a time when little is coming in. Lance, Art, and Wayne haven't had time to establish a billing system since most of their clients' cases haven't yet reached the courts, and the lawyers didn't think it would be right to bill them until "results were achieved." Unfortunately, Lance, Art, and Wayne's suppliers don't feel the same way. Their suppliers expect them to pay their accounts payable within a few days of receiving their bills. So far, there hasn't even been enough money to pay the three lawyers, and they are not sure how long they can keep practicing law without getting some money into their pockets.

Instructions: Can you provide any suggestions for Lance, Art, and Wayne to improve their cash management practices?

Reference no: EM131828412

Questions Cloud

Determine the pdf and expected value of w : Determine the PDF and expected value of W, the time until the system fails (or the lifetime of the system), under the following system configurations:

How much data does that generate in one second : How much data does that generate in one second? Are these the same sampling rate and quantization levels as used on a CD? Can you verify your answer?

Create a table that shows every time signals are converted : Create a table (or draw a figure) that shows every time data or signals are converted to a different form in this process.

Random variables that are uniformly distributed : Let X and Y be two independent random variables that are uniformly distributed between 0 and 1. If we define find the PDF of Z.

How does improve the cash management practices : Lance, Art, and Wayne have joined together to open a law practice but are struggling to manage their cash flow.

Practice proper risk management : Many companies today do not practice proper risk management, or in some cases, any risk management at all.

Prepare a cash budget for the particular months : Rigley Company expects to have a cash balance of $46,000 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.

What is an image description language : What is an image description language? What are the advantages of representing images with image description languages?

Performing risk management : Both the ATOM and the PMBOK® Guide processes are designed to be simple, scalable formats for performing risk management that can be applied to any project

User Account

All Pages