What was the total amount of current 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 | |
| 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 total current liabilities as of December 31, 2022, were $77,189. Current liabilities represent Cinch I.T.'s short-term financial obligations, which are due within one year. These liabilities include payables to suppliers (trade payables), accrued liabilities (expenses that have been incurred but not yet paid), and the current portion of deferred revenue (revenue that has been collected but not yet earned).
Understanding the composition and amount of current liabilities is crucial for assessing Cinch I.T.'s short-term financial health. A high level of current liabilities relative to current assets may indicate liquidity issues, meaning Cinch I.T. might struggle to meet its immediate obligations. Conversely, a low level of current liabilities suggests a strong short-term financial position.
For a prospective Cinch I.T. franchisee, this figure provides a snapshot of the company's financial obligations at a specific point in time. It's important to consider this number in conjunction with other financial metrics, such as current assets and revenue, to gain a comprehensive understanding of Cinch I.T.'s financial stability. Additionally, comparing these figures across multiple years can reveal trends and potential areas of concern or improvement.
It is important to note that the balance sheet provides only a snapshot in time. The liabilities of Cinch I.T. may have changed since December 31, 2022. A prospective franchisee should review the company's most recent financial statements and discuss any concerns with a financial advisor.