What were Cinch I.T.'s total current liabilities in 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 company's total current liabilities as of December 31, 2022, were $77,189. This figure represents the sum of several short-term financial obligations, including trade payables, accrued liabilities, and the current portion of deferred revenue. These liabilities are expected to be settled within one year.
For a prospective Cinch I.T. franchisee, understanding the franchisor's financial liabilities can provide insight into the company's financial stability and its ability to meet its short-term obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, while a lower level might suggest a stronger financial position.
It's important to note that these figures are specific to Cinch Franchise, LLC, the franchisor entity, and do not reflect the financial performance of individual franchise units. Franchisees should conduct their own due diligence and consult with financial advisors to assess the financial health of the franchisor and its potential impact on their investment.