What was the total amount of accounts payable and accrued liabilities for Burros Fries?
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 | $ 254,106 |
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, 2023. This figure represents the short-term obligations Burros Fries owes to its suppliers and other creditors. It's a snapshot of the company's immediate financial obligations at the end of the fiscal year.
In addition to accounts payable and accrued liabilities, Burros Fries also had income taxes payable of $2,937. Combining these, the total current liabilities amounted to $20,936. Beyond these immediate liabilities, Burros Fries reported deferred franchise fees of $85,021, bringing the total liabilities to $105,957.
For a prospective franchisee, understanding these figures is crucial. It provides insight into the financial health and stability of Burros Fries. While accounts payable are a normal part of business, a high level of accrued liabilities could indicate potential financial strain. Reviewing these figures in the context of Burros Fries' overall financial statements can help potential franchisees assess the financial risks and opportunities associated with investing in the franchise.