What was the bad debt expense for Canopy Lawn Care in 2022?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
TATEMENTS OF CASH FLOWS FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 20,459,018 | $ 9,920,680 | $ 6,089,513 |
| Adjustments to reconcile net income | |||
| to net cash provided by operating activities: | |||
| Bad debt expense | 300,531 | 59,046 | 82,201 |
| Depreciation and amortization |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the bad debt expense for the company in 2022 was $82,201. This figure is part of the adjustments used to reconcile net income to net cash provided by operating activities. Bad debt expense represents the estimated amount of accounts receivable that Canopy Lawn Care does not expect to collect.
For a prospective Canopy Lawn Care franchisee, understanding the bad debt expense is important for assessing the financial health and stability of the company. It provides insight into the credit risk associated with the company's receivables and its ability to manage collections effectively. A higher bad debt expense could indicate potential issues with customer payment behavior or the company's credit policies.
It's worth noting that the provided financial data is presented 'As Restated,' suggesting that there may have been adjustments made to the original figures. Franchisees should inquire about the reasons for these restatements to gain a clearer understanding of the company's financial performance and reporting practices. Reviewing trends in bad debt expense over multiple years, such as the provided figures for 2023 ($59,046) and 2024 ($300,531), can also offer valuable insights into the company's financial management and risk profile.