What was the amount of trade receivables for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets: | |||
|---|---|---|---|
| Cash and cash equivalents | $ 1,854,735 | $ 2,931,372 | |
| Cash and cash equivalents—marketing fund, restricted | 434,199 | 771,794 | |
| Accounts receivable, net: | |||
| Trade receivables | 290,921 | 325,874 | |
| Marketing fund, restricted | 2,395,119 | 2,537,488 | |
| Related party receivable | 695,717 | 79,530 | |
| Prepaid expenses and other current assets | 859,866 | 228,561 | |
| Total current assets | 6,530,557 | 6,874,619 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the trade receivables for 2023 were $325,874. This figure represents the amount of money owed to Cicis for goods or services that have been delivered or used but not yet paid for. Trade receivables are considered current assets, reflecting their short-term nature and expectation of payment within a year.
Understanding the level of trade receivables is important for assessing Cicis's financial health and efficiency in collecting payments. A higher number might indicate more sales on credit, but it could also signal potential issues with collecting those receivables in a timely manner. Conversely, a lower number suggests that Cicis is effectively managing its collections and minimizing outstanding debts.
For a prospective franchisee, this information provides insight into Cicis's revenue cycle and how well the company manages its incoming payments. It is advisable to compare this figure with previous years and industry benchmarks to gauge the trend and relative performance. Additionally, understanding Cicis's credit policies and collection practices can help a franchisee anticipate potential cash flow dynamics within their own operations.