What was the net value of City Wide's accounts receivable, after allowance, in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
have not been subjected to the auditing procedures applied in the audit of the consolidated financial statements and accordingly, we do not express an opinion or provide any assurance on it.
Kansas City, Missouri March 20, 2025
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Balance Sheets December 31, 2024, 2023, and 2022
| | 2024 | 2023 | | 2022 | |-------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the net value of accounts receivable, after allowance, for City Wide in 2024 was $5,389,631. The allowance for credit losses that was subtracted from the gross accounts receivable to arrive at this net figure was $132,811 in 2024.
This figure represents the amount City Wide expects to collect from its outstanding invoices after accounting for potential uncollectible amounts. The allowance for credit losses is an estimate made by City Wide to cover potential non-payments from customers. This estimate is based on factors such as historical collection data, the current economic climate, and a review of outstanding receivables.
For a prospective franchisee, understanding the accounts receivable and the allowance for credit losses is crucial. It provides insight into the financial health and stability of City Wide. It also highlights the importance of credit management and collection efforts within the franchise system. Franchisees should inquire about City Wide's credit policies and procedures to minimize potential losses from uncollectible accounts.