What was Cinch I.T.'s total current liabilities in 2021?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| CINCH FRANCE | HISE, LLC | |||
|---|---|---|---|---|
| BALANCE S | ||||
| DECEMBER 31, 20 | 22 AND 2021 | |||
| $15-50-50MS(7M-4-5 | 40.000 | |||
| ASSET | S | 2022 | 2021 | |
| CURRENT ASSETS | - | |||
| Cash | S | 189.038 | S | 101,234 |
| Receivables: | ||||
| Trade | 54,720 | 112,709 | ||
| Employee Retention Credit | 7 | 32.487 | ||
| Prepaid expenses | 14.494 | 14,697 | ||
| TOTAL CURRENT ASSETS | S _ | 258,252 | S | 261.127 |
| LIABILITIES AND MEMBER | R'S EQUITY (DEFIC | Tr) | ||
| CURRENT LIABILITIES | 21194 | 16 | 43.594 | |
| Payables - trade | S- | 5,155 | 5 | 26,973 |
| Accrued liabilities | 16,534 | 19,451 | ||
| Current portion of deferred revenue | 55,500 | 102,200 | ||
| Due to related parties | 150 | 42,550 | - | 112,866 |
| TOTAL CURRENT LIABILITIES | 100 | 119,739 | 261,490 |
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 liabilities in 2021 were $261,490. This figure represents the sum of all short-term financial obligations that Cinch I.T. was expected to settle within one year. These liabilities include payables, accrued liabilities, the current portion of deferred revenue, and amounts due to related parties.
Understanding the composition of current liabilities is crucial for prospective franchisees. For instance, 'Payables - trade' represents short-term debts owed to suppliers, while 'Accrued liabilities' covers expenses that have been incurred but not yet paid. The 'Current portion of deferred revenue' signifies payments received for services or products that have not yet been delivered or rendered. 'Due to related parties' indicates amounts owed to entities or individuals with a close relationship to Cinch I.T.
For a potential Cinch I.T. franchisee, this information provides insight into the company's short-term financial health and its ability to meet its immediate obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues. Therefore, reviewing these figures in conjunction with other financial statement data is essential for assessing the overall financial stability of Cinch I.T.