What was the restated amount for Receivables - trade for Cinch I.T. as of December 31, 2020?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
EMBER'S DEFICIT, BEGINNING OF YEAR - | | (186,133) | (79,568) | | AS ADJUSTED | | | | | MEMBER'S DEFICIT, END OF YEAR | 5_ | (50,863) S | (186,133) |
| 2021 | Restated 2020 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net income (loss) before extraordinary income | S | 57.135 | S | (139,052) |
| Adjustments to reconcile net income (loss) before extraordinary | ||||
| income to net cash provided (used) by operations: | ||||
| Changes in operating assets and liabilities: | ||||
| (Increase) decrease in: | na w Made | |||
| Receivables - trade | (63,978) | 47,332 | ||
| Prepaid expenses | (14,697) | - | ||
| Increase (decrease) in: | 12 202 | 1000000 | ||
| Payables - trade | 16,601 | (5.624) | ||
| Accraed liabilities | 2,456 | (4,340) | ||
| Deferred revenue | - | 27,325 | - | 41,000 |
| Total adjustments | - | (32,293) | - | 78,368 |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | - | 24,842 | - | (60,684) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Repayments to member | (41,467) | (23.633) | ||
| Advances from related parties | 37,866 | 70,000 | ||
| Proceeds from Paycheck Protection Program Joans | 60.138 | 17.997 | ||
| NET CASH PROVIDE |
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 amount for Receivables - trade as of December 31, 2020, was $47,332. This figure reflects adjustments made to the initial financial statements.
The Receivables - trade represent the money owed to Cinch I.T. by its customers for services rendered but not yet paid. The restatement indicates a change from the initially reported figures, which could be due to a variety of factors such as accounting errors or changes in valuation.
Prospective franchisees should pay close attention to these restatements as they provide insight into the accuracy and reliability of Cinch I.T.'s financial reporting. Understanding the reasons behind such adjustments is crucial for assessing the financial health and stability of the franchise system.