What was the restated amount for Net loss for Cinch I.T. as of December 31, 2020?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| Printer Local Special Science and | 2021 | Restated 2020 | |
|---|---|---|---|
| ENTRAORDINARY INCOME | 5 | 32,487 | |
| Employee Retention Credit | |||
| Paycheck Protection Program loan forgiveness | 3 | 78,135 | 52,407 |
| TOTAL EXTRAORDINARY INCOME | 78.135 | 32,487 | |
| NET INCOME (LOSS) | _ | 135.270 | (106.565) |
| MEMBER'S DEFICIT, BEGINNING OF YEAR - | (186,133) | (100.766) | |
| AS PREVIOUSLY REPORTED | |||
| PRIOR PERIOD ADJUSTMENT - | 6 | 21.198 | |
| Correction of an error | |||
| MEMBER'S DEFICIT, BEGINNING OF YEAR - | (186,133) | (79,568) | |
| AS ADJUSTED | |||
| MEMBER'S DEFICIT, END OF YEAR | 5_ | (50,863) S | (186,133) |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the restated net loss as of December 31, 2020, was ($106,565). This figure reflects adjustments made to the initial financial statements. The adjustments are due to errors that were found and corrected. These corrections impact the accuracy and reliability of the financial data presented for that period.
It is important to note that the company had to restate its financials. This means that the initial reports had errors that needed to be corrected. For a prospective franchisee, this highlights the importance of carefully reviewing the financial statements and understanding the reasons behind any restatements. It also shows the importance of having proper accounting practices.
In addition to the net loss, the provided financial statement also includes details on extraordinary income, such as the Employee Retention Credit and Paycheck Protection Program loan forgiveness, which contributed to the overall financial performance of Cinch I.T. during that period. Reviewing these figures can provide a more complete picture of the company's financial health and the factors influencing its profitability.