What were Cinch I.T.'s trade payables 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 trade payables in 2022 were $5,155. This figure represents the amount Cinch I.T. owed to its suppliers and vendors for goods and services received but not yet paid for as of December 31, 2022. Trade payables are a current liability, indicating that these amounts were expected to be paid within one year.
For a prospective Cinch I.T. franchisee, understanding the franchisor's trade payable trends can provide insights into the company's financial health and its ability to manage its short-term obligations. A significant increase in trade payables could indicate potential cash flow issues, while a decrease might suggest improved financial management or better payment terms with suppliers. However, it is important to consider these figures in the context of the company's overall financial performance and industry benchmarks.
It's also worth noting that trade payables are a normal part of business operations, especially for companies that rely on inventory or regular services from suppliers. Franchisees should look for consistency and stability in these figures, as well as compare them to similar companies in the IT support services sector to assess whether Cinch I.T.'s financial practices are in line with industry standards. Reviewing these figures over several years, as presented in the balance sheets, can provide a more comprehensive understanding of the company's financial management.