What was the reported amount of trade receivables for Cool Binz 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 reported as $5,231. This figure represents the amount of money owed to Cool Binz by its customers for goods or services that have been delivered or used but not yet paid for. Understanding the trend in trade receivables is important for franchisees to assess the financial health and efficiency of the business. A high or increasing amount of trade receivables could indicate potential issues with collecting payments from customers, which can impact cash flow.
In addition to the trade receivables, the FDD also lists "Other" receivables as $432 and an allowance for credit losses of $4,589 for the same period. The allowance for credit losses is an estimate of the amount of trade receivables that may not be collected. The net accounts receivable, which is the trade receivables less the allowance for credit losses, was $3,074 as of December 31, 2022.
Prospective franchisees should pay close attention to these figures and compare them to previous years to identify any trends or potential issues. It's also important to understand Cool Binz's credit and collection policies to assess the risk of uncollectible accounts. By carefully analyzing these financial metrics, franchisees can make informed decisions about managing their cash flow and ensuring the financial stability of their Cool Binz franchise.