What was the reported value of Aerus's accounts receivable before reserve?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Aerus Franchising Balance Sheet As of March 31, 2025
Cash & Cash Equivalents - 550 - 550 Accounts Receivable 1,230,488 1,230,488 Accounts Receivable - Reserve - 621,173 - 621,173 1915 -Inventory - Consigned 1,717,427 1,717,427 Prepaid Expenses 37,586 37,586 2,363,778 Long Term Receivables 135,602 135,602 Property Plant & Equipment 81,409 Accumulated Depreciation - 81,409 Assets Current Assets Cash Accounts Receivable Accounts Receivable - Reserve Total Cash Total A/R Total A/R - Reserve Inventory Inventory - Reserve Prepaid Expenses Total Inventory Total Prepaid Expenses Total Current Assets Long Term Receivables Total LT Receivables Property Plant & Equipment
Other Assets 209,918
Total Other Assets
Total Assets
209,918
2,709,298
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the company's balance sheet as of March 31, 2025, shows accounts receivable valued at $1,230,488 before any reserve for doubtful accounts. This figure represents the total amount of money owed to Aerus by its customers or franchisees for goods or services provided on credit.
For a prospective Aerus franchisee, understanding the accounts receivable is crucial because it reflects the financial health and efficiency of the company in collecting payments. A high accounts receivable balance might indicate potential issues with franchisees not paying on time, which could affect Aerus's cash flow. Conversely, a well-managed accounts receivable indicates that Aerus has effective credit and collection policies in place.
The balance sheet also lists an "Accounts Receivable - Reserve" of $621,173. This reserve represents an estimate of the amount of accounts receivable that may not be collectible. The net accounts receivable (accounts receivable less the reserve) would provide a more conservative view of what Aerus expects to actually collect. Reviewing these figures helps potential franchisees assess the risk associated with Aerus's outstanding payments and the overall quality of its assets.
It is important to note that these are unaudited financial statements. The FDD explicitly advises prospective franchisees to be aware that no independent certified public accountant has audited these figures or expressed an opinion on their content or form. Therefore, while the $1,230,488 figure provides an indication of Aerus's accounts receivable, potential franchisees should conduct their own due diligence and possibly seek professional financial advice to verify the accuracy and reliability of this information.