What was the total value of trade receivables for Carls in 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
of income taxes paid disaggregated by federal, state and foreign taxes. The standard is effective for annual reporting periods beginning after December 15, 2024 for public entities. For other entities, the standard is effective for annual reporting periods beginning after December 15, 2025. Early adoption of the guidance is permitted. We are currently evaluating the impact the adoption of this standard will have on our Combined Consolidated Financial Statements.
NOTE 3 — ACCOUNTS RECEIVABLE, NET
Accounts receivable, net, as of January 31, 2024 and 2023 consisted of the following:
| 2024 | 2023 | |
|---|---|---|
| Trade receivables | $ 21,364 | $ 20,671 |
| Leases receivable | 181 | 206 |
| Notes receivable | 2,096 | 1,372 |
| Allowance for credit losses | (1,893) | (1,550) |
| Total accounts receivable, net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls' 2024 Franchise Disclosure Document, the value of trade receivables varies across different financial statements. One statement indicates that in 2023, Carls' trade receivables amounted to $20,671. Another financial statement shows the trade receivables for 2023 to be $37,474. These figures represent the amounts due to Carls from its customers or franchisees for goods or services already provided.
It's important to note that these receivables are subject to potential credit losses, as reflected in the allowance for credit losses. The allowance for credit losses was ($1,550) in one statement and ($2,033) in another for 2023, which reduces the total accounts receivable to a net value. The total accounts receivable, net, was reported as $20,699 and $37,541 for the same year across the different financial statements.
The discrepancies in trade receivables and allowances for credit losses across different statements likely reflect the financial reporting for different entities or segments within the Carls franchise system. A prospective franchisee should clarify with Carls which specific entity or segment these figures pertain to in order to understand the financial health and accounts receivable management of that particular area of the business.
Understanding the trade receivables is crucial for assessing the financial stability and cash flow of a Carls franchise. Franchisees should inquire about the credit terms offered to customers, the typical collection period, and the methods used to manage and minimize potential credit losses. This information will help in forecasting revenue and managing working capital effectively.