What was the total amount of Burros Fries' accounts payable and accrued liabilities?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
E, INC. BALANCE SHEET DECEMBER 31, 2022
LIABILITIES AND EQUITY
| Accounts payable and accrued liabilities | $ 17,999 |
|---|---|
| Income taxes payable | 2,937 |
| TOTAL CURRENT LIABILITIES | 20,936 |
| OTHER LIABILITIES | |
| Deferred franchise fees | 85,021 |
| TOTAL LIABILITIES | 105,957 |
| STOCKHOLDERS' EQUITY: | |
| Common stock, no par value, 100,000 shares | |
| authorized, issued and outstanding | - |
| Additional paid-in capital | 65,100 |
| Retained earnings | 83,049 |
| TOTAL STOCKHOLDERS' EQUITY | 148,149 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 254,10 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, the company's accounts payable and accrued liabilities totaled $17,999 as of December 31, 2021. This figure represents the short-term obligations Burros Fries owes to its suppliers, vendors, and other creditors. Accrued liabilities are expenses that have been incurred but not yet paid, such as wages, utilities, or taxes.
Accounts payable and accrued liabilities are important because they reflect Burros Fries' short-term financial health and its ability to meet its immediate obligations. A high level of accounts payable and accrued liabilities relative to its assets could indicate that Burros Fries is struggling to manage its cash flow or is relying heavily on credit to finance its operations.
For a prospective Burros Fries franchisee, understanding the franchisor's accounts payable and accrued liabilities can provide insights into the financial stability of the company. While a single year's figure provides a snapshot in time, reviewing this amount over several years can reveal trends and potential issues. It is also useful to compare these figures to those of other franchise systems in the same industry to assess Burros Fries' relative financial position.