What was the total value of trade receivables for Best Brains as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Current Assets Cash & cash equivalents | 1 | 262,049.67 | 154,275.10 |
| Inventory | _ | 417,347.00 | 289,840.00 |
| Trade Receivables | 2 | 2,038,407.38 | 1,549,975.79 |
| Other Current Assets Total Currrent Assets | 3 | 255,726.78 2,973,530.83 | 225,576.84 2,219,667.73 |
| Trade receivables | 2023 | ||
| ------------------- | -------------- | ||
| Over three months | 406,557.60 | ||
| Others | 1,631,849.78 | ||
| Total | 2,038,407.38 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the total value of trade receivables as of December 31, 2023, was $2,038,407.38. Trade receivables represent the money owed to Best Brains by its customers or franchisees for goods or services that have been delivered but not yet paid for. This figure is an important indicator of the company's financial health and its ability to collect revenue. A high number of trade receivables could indicate potential issues with collecting payments, while a lower number suggests efficient revenue collection processes.
The FDD also provides a breakdown of these receivables. Specifically, $1,631,849.78 was outstanding for a period not exceeding three months, while $406,557.60 was outstanding for over three months. This breakdown is useful for assessing the aging of the receivables, with amounts outstanding for longer periods potentially being more difficult to collect. Monitoring the aging of receivables is a standard accounting practice to evaluate potential credit risks.
Prospective franchisees should consider the trade receivables figure in the context of Best Brains' overall financial performance. Understanding the company's credit policies and collection practices can provide insights into the risk associated with these receivables. It is also advisable to compare these figures with previous years to identify any trends or potential issues in revenue collection.