What were Aw's total current liabilities at the end of 2022?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Assets | ||
| Cash | $ 4,705 | $ 33,561 |
| Due from franchisee | 7,837 | 1,226 |
| Due from related parties | 51,502 | 51,502 |
| Total Assets | $ 64,044 | $ 86,289 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ — | $ 4,834 |
| Loan payable SBA | 513 | 476 |
| Loan payable WinTrust | 10,073 | 10,073 |
| Contract Liability |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company's total current liabilities at the end of 2022 were $23,633. Current liabilities represent obligations due within one year, reflecting Aw's short-term financial obligations. These liabilities include accounts payable, accrued expenses, and the current portions of loans and contract liabilities. Understanding the composition and size of these liabilities is crucial for assessing Aw's short-term financial health.
The current liabilities consist of several components. Accounts payable and accrued expenses totaled $4,834, representing short-term obligations to suppliers and other service providers. Loan payable to SBA was $476, and loan payable to WinTrust was $10,073, indicating the short-term portions of Aw's debt obligations. Contract liability was $8,250, reflecting deferred revenue or obligations to provide services or goods in the near term.
For a prospective franchisee, this information is relevant for evaluating Aw's financial stability and management. A high level of current liabilities relative to current assets could indicate liquidity issues, while a low level might suggest efficient management of short-term obligations. Reviewing these figures in conjunction with Aw's revenue and profitability can provide a more comprehensive understanding of its financial performance. It is also important to compare these figures with previous years and industry benchmarks to identify any trends or potential concerns.