What was the reported amount for Chem Dry's trade receivables in 2022?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Trade receivables | $2,880 | $5,231 | $8,483 |
| Other | 431 | 432 | 864 |
| Less - Allowance for credit losses | 973 | 2,589 | 3,016 |
| Net accounts receivable | $2,338 | $3,074 | $6,331 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the company's trade receivables for 2022 were reported as $5,231,000. This figure represents the amount of money owed to Chem Dry by its customers for goods or services provided on credit.
However, it's important to note that this is a gross figure. To arrive at the net accounts receivable, an allowance for credit losses is subtracted. In 2022, this allowance was $2,589,000. The net accounts receivable for Chem Dry in 2022 was $3,074,000.
For a prospective franchisee, understanding these figures can provide insight into Chem Dry's financial health and its ability to manage credit and collections. A high level of trade receivables might indicate that Chem Dry is having difficulty collecting payments from its customers, which could impact its cash flow. Reviewing these figures over the three-year period (2021-2023) can show trends in Chem Dry's receivables management.