What was the approximate total amount of Coffee News receivables over 90 days in 2024?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024, 2023 and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| ASSETS | ||||
| Current assets | ||||
| Cash | $ 64,135 | $ 66,796 | $ 94,422 | |
| Accounts receivable, net of reserve for current expected credit | ||||
| losses of $80,000 in 2024 and $120,000 in 2023 and 2022 | 26,049 | 38,558 | 23,979 | |
| Total current assets | 90,184 | 105,354 | 118,401 |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the company had an accounts receivable balance, net of reserve for current expected credit losses, of $26,049 in 2024. The reserve for current expected credit losses was $80,000 in 2024. This means that the gross accounts receivable was $106,049 ($26,049 + $80,000).
The document does not specify the portion of accounts receivable that are over 90 days old. It is important to note that the net accounts receivable figure reflects a reserve for potential credit losses, indicating that Coffee News acknowledges some risk in collecting all outstanding receivables.
A prospective franchisee should inquire about the typical age and collectibility of Coffee News's accounts receivable to understand the potential risk of non-payment and its impact on their own financial projections. Understanding the historical trends in accounts receivable aging and the effectiveness of Coffee News's collection efforts would be beneficial in assessing the financial health of the franchise system.