What were Cinch I.T.'s total current assets in 2022?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
se substantial doubt about Cinch Franchise LLC's ability to continue as a going concern for a reasonable period of time.
| 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 |
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 total current assets in 2022 were $258,252. This figure represents the sum of Cinch I.T.'s cash, receivables, and prepaid expenses as of December 31, 2022. These assets are considered current because they are expected to be converted into cash within one year.
Understanding the composition of current assets is crucial for prospective franchisees. Cash represents the liquid funds available to Cinch I.T. for immediate expenses. Receivables are amounts owed to Cinch I.T., typically from clients for services rendered. Prepaid expenses are payments made in advance for goods or services that Cinch I.T. will use in the future, such as insurance or rent.
A healthy level of current assets indicates Cinch I.T.'s ability to meet its short-term obligations and invest in its operations. Franchisees should analyze these figures in conjunction with Cinch I.T.'s current liabilities to assess the company's overall financial health and liquidity. Comparing these figures year-over-year can also reveal trends in Cinch I.T.'s financial performance.