What was the total amount of accounts receivable for Chocolate Bash as of December 31, 2023?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021 BALANCE SHEET
| ASSETS | 12/31/23 12/31/22 12/31/21 | ||
|---|---|---|---|
| CURRENT ASSETS | |||
| Cash and Cash Equivalents | $ 21,639 | $ 59,295 | $ 104,922 |
| Accounts Receivable | 2,153 | 21,19 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2023, was $2,153. The FDD also provides figures for the preceding years, with accounts receivable totaling $21,194 as of December 31, 2022, and no reported accounts receivable as of December 31, 2021.
Accounts receivable represents money owed to Chocolate Bash by its customers or franchisees for goods or services delivered but not yet paid for. This can include initial franchise fees, royalty fees, brand development contributions, and training fees charged to franchisees. The company records an accounts receivable when revenue is recognized prior to invoicing.
A prospective Chocolate Bash franchisee should pay attention to the accounts receivable figures as they provide insight into the company's revenue collection efficiency and overall financial health. Monitoring the trend in accounts receivable can help assess the effectiveness of Chocolate Bash's credit and collection policies. A significant increase in accounts receivable could indicate potential issues with franchisees not paying on time, which may impact the franchisor's cash flow.