What was the amount of Cool Binz's trade receivables as of December 31, 2022?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | 2024 | 2023 | 2022 |
|---|---|---|---|
| Trade receivables | $2,627 | $2,880 | $5,231 |
| Other | 979 | 431 | 432 |
| Less: allowance for credit losses | 878 | 973 | 4,589 |
| Net Accounts Receivable | $2,728 | $2,338 | $3,074 |
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the trade receivables as of December 31, 2022, were $5,231. This figure represents the amount of money Cool Binz expected to receive from its customers or clients for goods or services provided on credit. Trade receivables are a key indicator of a company's short-term financial health and its ability to manage credit and collections effectively.
However, it's important to note that there is also an allowance for credit losses listed. For December 31, 2022, this allowance was $4,589. This allowance represents Cool Binz's estimate of the amount of trade receivables that may not be collectible. The net accounts receivable, which is the trade receivables less the allowance for credit losses, was $3,074 as of December 31, 2022.
Potential franchisees should pay close attention to both the gross trade receivables and the allowance for credit losses. A high level of trade receivables might indicate strong sales, but a high allowance for credit losses could suggest difficulties in collecting payments. Reviewing these figures over several years, as presented in the table, can provide insights into Cool Binz's financial stability and its effectiveness in managing accounts receivable. Franchisees should inquire about Cool Binz's credit policies and collection practices to better understand the risks associated with extending credit to customers.