What was the total amount of accrued liabilities for Cinch I.T. on December 31, 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 |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the accrued liabilities on December 31, 2022, were $16,534. This figure represents the company's short-term financial obligations that have been incurred but not yet paid. Accrued liabilities are a standard accounting item, reflecting expenses like salaries, utilities, or taxes that Cinch I.T. owes at the end of the accounting period.
For a prospective Cinch I.T. franchisee, understanding the franchisor's accrued liabilities can provide insight into the company's financial health and its ability to meet its short-term obligations. A high level of accrued liabilities might indicate potential cash flow issues, while a lower amount could suggest better financial management.
It's important to note that accrued liabilities are a snapshot in time and can fluctuate. Franchisees should consider this figure in conjunction with other financial metrics to gain a comprehensive understanding of Cinch I.T.'s financial standing. Reviewing trends in accrued liabilities over multiple periods would offer a more insightful perspective on the company's financial stability.