What was the net income for Cornwell Quality Tools in 2021?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
20,451,381 | $ (773,260) | $ - | $ 19,678,121 |
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2022
| Cornwell Quality Tools Company | CQT Kennedy, LLC | Eliminations | Consolidated | |
|---|---|---|---|---|
| SALES Less: Dealer weekly volume incentives | $ 251,915,684 4,853,504 | $ 22,648,171 | $ (12,862,937) | $ 261,700,918 4,853,504 |
| Sales - Net | 247,062,180 | 22,648,171 | (12,862,937) | 256,847,414 |
| COST OF GOODS SOLD | 178,516,201 | 23,648,832 | (12,862,937) | 189,302,096 |
| Gross profit | 68,545,979 | (1,000,661) | - | 67,545,318 |
| EXPENSES | ||||
| Shipping and warehousing | 6,300,877 | 2,300 | 6,303,177 | |
| Selling | 21,791,074 | 646,761 | 22,437,835 | |
| General and administrative | 13,068,550 | 1,259,995 | - | 14,328,545 |
| Employee stock ownership plan contribution | 5,000,000 | - | - | 5,000,000 |
| Goodwill amortization expense | - | 848,375 | - | 848,375 |
| Total expenses | 46,160,501 | 2,757,431 | - | 48,917,932 |
| Income (loss) before financing operations | 22,385,478 | (3,758,092) | • | 18,627,386 |
| FINANCING OPERATIONS | ||||
| Revenues | 19,598,514 | - | - | 19,598,514 |
| Other financing income | 1,069,676 | 1,069,676 | ||
| Total financing income | 20,668,190 | - | - | 20,668,190 |
| Expenses | 7,213,203 | _ | · · | 7,213,203 |
| Income from financing operations | 13,454,987 | _ | _ | 13,454,987 |
| Income (loss) from operations | 35,840,465 | (3,758,092) | - | 32,082,373 |
| OTHER INCOME (EXPENSE) | ||||
| Interest expense | (239,390) | (8,261) | - | (247,651) |
| Interest income | 325,161 | - | 325,161 | |
| Other expense - Net | (65,670) | (200) | - | (65,870) |
| Other income (expense) - Net | 20,101 | (8,461) | _ | 11,640 |
| Income (loss) before taxes | 35,860,566 | (3,766,553) |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools's 2025 Franchise Disclosure Document, the consolidated statement of shareholders' equity includes the net income for the year 2022, which was $23,889,515. The net income for 2023 was $19,678,121. The document does not explicitly state the net income for 2021 in the provided excerpts.
While the provided excerpts do not contain the specific net income figure for 2021, they do offer a broader financial overview of Cornwell Quality Tools. The excerpts include consolidated statements of shareholders' equity for 2023 and 2022, along with details on sales, costs, expenses, and other income items. This information can help a prospective franchisee understand the overall financial performance and structure of the company.
To obtain the net income for 2021, a prospective franchisee should specifically request this information from Cornwell Quality Tools. Reviewing the complete audited financial statements for 2021 will provide a clearer picture of the company's profitability during that period and allow for a more comprehensive financial analysis. Understanding the trends in net income over several years is crucial for assessing the financial stability and growth potential of the franchise.
In addition to requesting the specific net income figure, it would be beneficial to inquire about any significant factors that influenced the company's financial performance in 2021. This could include changes in sales volume, cost of goods sold, operating expenses, or any unusual items that may have impacted the bottom line. Understanding these factors will provide valuable context for interpreting the net income figure and assessing the company's overall financial health.