What was the trade receivables amount 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, was $5,231. This represents the amount of money Cool Binz was owed by its customers for goods or services provided on credit.
Trade receivables are a normal part of business operations, especially when offering services on credit. However, it's important to note that not all receivables are collected, which is why companies establish an allowance for credit losses. For Cool Binz, the allowance for credit losses as of December 31, 2022, was $4,589. This allowance reduces the net accounts receivable to $3,074, reflecting the amount Cool Binz realistically expected to collect.
A prospective Cool Binz franchisee should pay attention to the trade receivables and the allowance for credit losses. Monitoring these figures can provide insights into the creditworthiness of customers and the effectiveness of Cool Binz's collection efforts. A high level of trade receivables coupled with a large allowance for credit losses could indicate potential issues with collecting payments, which could impact the franchisee's cash flow.