What was the reported value of Chem Dry's total liabilities?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Reported | As Restated | Effect of Change | ||
|---|---|---|---|---|
| Total current assets | $ 11,191 | $11,191 | $ | - |
| Right-of-use assets - Net | 1,379 | 1,379 | - | |
| Property and equipment - Net | 1,701 | 1,701 | - | |
| Goodwill | 56,056 | 56,056 | - | |
| Intangible assets - Net | 36,731 | 32,566 | (4,165) | |
| Other assets | 28,076 | 28,076 | - | |
| Total assets | $ 135,134 | $130,969 | $(4,165) | |
| Current liabilities | $ 6,984 | $6,984 | $ | - |
| Operating lease obligation - Net of current portion | 425 | 425 | - | |
| Deferred revenue - Net of current portion | 4,864 | 4,864 | - | |
| Deferred tax liabilities | 4,060 | 3,001 | (1,059) |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Chem Dry does not include a specific figure for total liabilities. The excerpted financial data focuses on assets and a few specific liabilities, such as current liabilities ($6,984,000), operating lease obligations ($425,000), deferred revenue ($4,864,000), and deferred tax liabilities ($4,060,000 reported or $3,001,000 as restated).
Without the total liabilities figure, prospective franchisees cannot fully assess Chem Dry's overall financial health and leverage. Understanding the debt structure is crucial in evaluating the risk associated with investing in the franchise.
To gain a comprehensive understanding of Chem Dry's financial position, a potential franchisee should request the complete financial statements, including the balance sheet, from the franchisor. This will provide the necessary details to evaluate the company's solvency and stability.