What was the provision for credit losses for Cornwell Quality Tools in 2022?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
March 26, 2024
COHEN & COMPANY, LTD.
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CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2023
| Cornwell Quality Tools Company | CQT Kennedy, LLC | Eliminations | Consolidated | ||
|---|---|---|---|---|---|
| ASSETS | |||||
| CURRENT ASSETS | • | ||||
| Cash and cash equivalents Accounts receivable, trade - Net of allowance for credit losses of $82,720 | $ 32,798,231 | $ 889,340 | $ - | $ 33,687,571 | |
| 7,983,926 | 769,607 | · - | 8,753,533 | ||
| Accounts receivable - Subsidiary | 28,648,126 | 13,624,185 | (42,272,311) | - | |
| Notes receivable - Net of allowance for credit losses |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools's 2025 Franchise Disclosure Document, the company's accounting practices involve allowances for credit losses on accounts and notes receivable. The document specifies the net value of these receivables after deducting these allowances.
As of December 31, 2022, Cornwell Quality Tools reported trade accounts receivable of $7,983,926, net of an allowance for credit losses of $82,720. Additionally, notes receivable were valued at $2,736,323, net of an allowance for credit losses of $250,000, and finance receivables were valued at $24,562,440, net of an allowance for credit losses of $10,449,079.
For a prospective franchisee, these figures indicate the scale of credit Cornwell Quality Tools extends to its dealers and customers, as well as the estimated uncollectible amounts. Understanding these provisions can help a franchisee assess the financial health and risk management practices of Cornwell Quality Tools. It is important to note that these figures reflect consolidated results, including Cornwell Quality Tools Company and its subsidiary, CQT Kennedy, LLC.