What is the significance of Advanced Mobile Iv And Amiv's fiscal year-end date?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
The Company uses the accrual basis of accounting, and its accounting period is the 12-month period ending December 31 of each year.
As of December 31, 2022, the accrued liabilities totaled $12,323.
As of December 31, 2022, the Company had deferred revenue of $39,998, all of which was classified as current.
We have audited the accompanying financial statements of Advanced Mobile IV, LLC, which comprise the balance sheet as of December 31, 2022, and the related statements of operations, members' equity, and cash flows for the year then ended, and the related notes to the financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, the company's fiscal year ends on December 31st of each year. This is significant because the company uses this date to close its books and prepare its annual financial statements. These financial statements provide a snapshot of the company's financial performance and position, which is crucial for prospective franchisees to evaluate the financial health and stability of Advanced Mobile Iv And Amiv.
The financial statements, which include the balance sheet, income statement, statement of cash flows, and related notes, are audited by an independent auditor. The auditor's report expresses an opinion on whether the financial statements present fairly the company's financial position and results of operations in accordance with generally accepted accounting principles (GAAP). For example, the balance sheet as of December 31, 2022, along with the related statements for the year then ended, are audited and presented in the FDD. Notes to the financial statements, such as those detailing accrued liabilities totaling $12,323 as of December 31, 2022, and deferred revenue of $39,998, provide further insight into the company's accounting practices and financial obligations.
For a prospective franchisee, understanding Advanced Mobile Iv And Amiv's fiscal year-end is important for several reasons. First, it allows them to compare the company's financial performance over time and against other franchise opportunities. Second, it provides a basis for evaluating the reasonableness of the company's projections and assumptions. Finally, it helps them assess the company's ability to support its franchisees and invest in the growth of the franchise system. Therefore, reviewing the financial statements and understanding the fiscal year-end date are critical steps in the due diligence process for any prospective Advanced Mobile Iv And Amiv franchisee.