What was the total amount of accounts receivable for the C12 Group in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
financial position. Its federal tax returns for the last four years remain subject to examination. The Company is subject to the Texas margin tax.
Advertising: Advertising costs are expensed as incurred.
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Concentrations of Risk: Financial instruments that potentially expose the Company to credit risk consist principally of cash and trade accounts receivables. The Company occasionally maintains cash balances in financial institutions that exceed the amounts insured by the FDIC. The Company periodically assesses the financial condition of the institutions and believes that the risk of loss is
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
The C12 Group's 2025 Franchise Disclosure Document does not explicitly state the total amount of accounts receivable for 2022. While the document refers to accounts receivable in the context of credit risk and accounting policies, it does not provide a specific figure for the total value of these receivables as of December 31, 2022. The financial statements included in Item 22 provide consolidated balance sheets as of December 31, 2022 and 2021, but the actual balance sheet data is not included in the provided excerpts.
For a prospective franchisee, this missing information is crucial for assessing the financial health and stability of C12 Group. Accounts receivable represent money owed to the company by its customers, and the total amount can indicate the company's ability to collect payments and manage its cash flow effectively. A high level of accounts receivable could suggest potential issues with collections or customer solvency, while a low level might indicate efficient cash management practices.
To gain a comprehensive understanding of C12 Group's financial position, a potential franchisee should request the complete audited financial statements, including the balance sheets, for 2022. This will provide the necessary details on accounts receivable and other key financial metrics. Additionally, it would be prudent to inquire about the company's policies for managing and collecting accounts receivable to assess the risk associated with these assets.