What was the total amount of trade receivables for Carls in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
cial Statements.
New Accounting Standards Not Yet Adopted
Income Tax Disclosures
In December 2023, the FASB issued guidance that enhances income tax disclosures including expanded qualitative effective tax rate reconciliation. The standard also requires annual disclosure of income taxes paid disaggregated by federal, state and for
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the amount of trade receivables varies across different financial statements. One statement indicates that trade receivables for 2023 were $37,474. Another financial statement shows the trade receivables for 2023 to be $20,671. A third statement lists the trade receivables as $37,474 for 2023.
This discrepancy suggests that Carls may have multiple entities or segments reporting financials separately, or that the figures were restated between reports. It's important to note that these are 'trade receivables,' which generally represent the amounts owed to Carls by its customers or franchisees for goods or services already provided.
For a prospective franchisee, this inconsistency highlights the importance of understanding which financial statement applies to the specific franchise location or business model they are considering. It would be prudent to seek clarification from Carls regarding these different figures to understand the underlying business segments and their respective financial performance. A potential franchisee should also inquire about the allowance for doubtful accounts, which reflects the amount of receivables that Carls does not expect to collect.