What were Cinch I.T.'s accrued liabilities in 2022?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| CINCH FRANCHISE LLX BALANCE SHEETS | ||||
|---|---|---|---|---|
| DECEMBER 31, 2023 AND 2 | 022 | |||
| ASSETS | ||||
| CHIRDCHET ADDITIO | 2023 | 2022 | ||
| CURRENT ASSETS Cash | S | 220,489 | S | 189,038 |
| Receivables - trade | 3 | 65,722 | 3 | 54,720 |
| Prepaid expenses | 03,142 | 14,494 | ||
| TOTAL CURRENT ASSETS | s | 286,211 | 8 | 258,252 |
| LIABILITIES AND MEMBER'S (DEFI | CTT/EQU | ITY | ||
| CURRENT LIABILITIES | ||||
| Payables - trade | S | 20,690 | 5 | 5,155 |
| Accrued liabilities | 22,314 | 16,534 | ||
| Current portion of deferred revenue | 42,375 | 55,500 | ||
| TOTAL CURRENT LIABILITIES | = | 85,379 | 77.189 | |
| LONG-TERM LIABILITIES | ||||
| Long-term debt | 98.500 | 98,500 | ||
| Long-term portion of deferred revenue | 19,625 | 39,500 | ||
| Due to related parties | 112,550 | 42,550 | ||
| TOTAL LONG-TERM LIABILITIES | _ | 230,675 | - | 180,550 |
| TOTAL LIABILITIES | 316,054 | 257.739 | ||
| MEMBER'S (DEFICIT) EQUITY | (29,843) | _ | 513 | |
| TOTAL LIABILITIES AND MEMBER'S (DEFICIT) EQUITY | s_ | 286,211 | 5_ | 258,252 |
| See accompanying notes and independent | (Ekuz) |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the company's accrued liabilities as of December 31, 2022, were $16,534. This figure represents obligations that Cinch I.T. had incurred but not yet paid at the end of that fiscal year. Accrued liabilities are a standard accounting item, reflecting expenses like wages, utilities, or taxes that are owed but haven't been disbursed.
For a prospective Cinch I.T. franchisee, understanding the franchisor's financial health is crucial. Reviewing the balance sheets provides insight into how Cinch I.T. manages its finances and obligations. A consistent trend of managing liabilities effectively can be a positive indicator.
It's important to note that this figure is just a snapshot in time. While $16,534 in accrued liabilities might seem modest, a potential franchisee should look at trends over several years to assess whether these liabilities are growing, shrinking, or remaining stable. Significant fluctuations could warrant further investigation to understand the underlying causes and potential implications for the franchisor's financial stability.
Franchisees should also compare these figures with industry benchmarks to determine if Cinch I.T.'s financial practices are in line with similar franchise systems. A detailed review of the complete financial statements, along with professional financial advice, is recommended before making any investment decisions.