What was the total amount of trade receivables for Carls as of January 31, 2024?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ion and consider whether a material inconsistency exists between the other information and the combined consolidated financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Nashville, Tennessee April 10, 2024
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED BALANCE SHEETS (In thousands)
| January 31, 2024 | January 31, 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,340 | $ 7,320 |
| Cash and cash equivalents - restricted | 15,942 | 16,053 |
| Accounts receivable, net | 21,748 | 20,699 |
| Due from affiliates | 425 | 539 |
| Inventories | 2,852 | 2,973 |
| Prepaid expenses | 470 | 173 |
| Other current assets | 79 | 83 |
| Total current assets | 53,856 | 47,840 |
| Property and equipment, net | 353,893 | 349,888 |
| Operating lease assets | 395,698 | 411,456 |
| Intangible assets, net | 777,538 | 793,030 |
| Other assets, net | 31,858 | 28,810 |
| Total assets | $ 1,612,843 | $ 1,631,024 |
| LIABILITIES AND MEMBERS' DEFICIT | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 11,800 | $ 11,800 |
| Current portion of finance leases | 1,515 | 1,268 |
| Current portion of operating leases | 73,773 | 76,242 |
| Accounts payable | 4,467 | 6,207 |
| Due to affiliates | 1,989 | 5,077 |
| Other current liabilities | 35,053 | 35,316 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the total accounts receivable, net, as of January 31, 2024, was $21,748. This represents the amount of money owed to Carls by its customers or franchisees, after deducting any allowances for doubtful accounts.
For a prospective franchisee, accounts receivable can reflect the financial health of the overall Carls system. A higher number might indicate strong sales, but it could also signal difficulties in collecting payments. Conversely, a lower number might suggest efficient payment collection or lower sales volume.
It's important to note that this figure is presented 'net,' meaning that Carls has already accounted for potential uncollectible amounts. Franchisees should inquire about Carls's credit policies, collection practices, and the criteria used to determine the allowance for doubtful accounts to fully understand the implications of this figure.