What is the total value of Cornwell Quality Tools' current liabilities?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
ITY | $ 252,469,922 | $ 26,058,891 | $ (54,708,102) | $ 223,820,711 | |
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2022
| 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 $98,107 | $ 19,314,757 | $ 280,027 | $ - | $ 19,594,784 |
| 9,258,048 | 759,325 | - | 10,017,373 | |
| Accounts receivable - Subsidiary | 26,726,542 | 12,115,657 | (38,842,199) | |
| Notes receivable - Net of allowance for credit losses of $250,000 | 2,920,164 | (50,042,199) | 2,920,164 | |
| Finance receivables - Net of allowance for credit losses of $9,046,877 | 21,249,210 | • · | - | 21,249,210 |
| Inventories - Net | 37,523,059 | 3,538,622 | - | 41,061,681 |
| Prepaid expenses and other assets | 1,939,980 | 9,193 | - | 1,949,173 |
| Refundable income taxes | 205,000 | - | 205,000 | |
| Total current assets | 119,136,760 | 16,702,824 | (38,842,199) | 96,997,385 |
| NONCURRENT ASSETS | ||||
| Notes receivable, net of current portion | 11,429,113 | - | = | 11,429,113 |
| Finance receivables, net of current portion | 65,818,519 | - | - | 65,818,519 |
| Note receivable - Subsidiary | 12,435,791 | - | (12,435,791) | - |
| Investment - Subsidiary | 1,000,000 | - | (1,000,000) | - |
| Property, plant, and equipment - Net | 11,284,780 | 6,251,840 | - | 17,536,620 |
| Operating lease right-of-use assets Goodwill - Net | 6,308,869 | 2 404 407 | ** | 6,308,869 |
| 4,010,000 | 3,181,407 | - | 3,181,407 | |
| Deferred income tax asset - Net Total noncurrent assets | 112,287,072 | 9,433,247 | (13,435,791) | 4,010,000 108,284,528 |
| Total Hollculfelit assets | (15,435,731) | 100,264,328 | ||
| TOTAL ASSETS | $ 231,423,832 | $ 26,136,071 | $ (52,277,990) | $ 205,281,913 |
| LIABILI | TIES AND SHAREHOLD | ERS' EQUITY | ||
| CURRENT LIABILITIES | ||||
| Accounts payable | $ 14,233,425 | $ 427,696 | $ - | $ 14,661,121 |
| Accounts payable - Parent | 12,115,657 | 26,726,542 | (38,842,199) | · · · · · |
| Current portion of operating lease liabilities | 562,857 | = | - | 562,857 |
| Accrued expenses | 3,034,056 | 428,237 | - | 3,462,293 |
| Deferred compensation | 125,226 | - | • | 125,226 |
| Accrued taxes | 174,736 | 58,869 | _ | 233,605 |
| Total current liabilities | 30,245,957 | 27,641,344 | (38,842,199) | 19,045,102 |
| LONG-TERM LIABILITIES | ||||
| Long-term portion of operating lease liabilities | 5,755,118 | - | - | 5,755,118 |
| Note payable - Parent | - | 12,435,791 | (12,435,791) | - |
| Deferred compensation, less current portion | 1,202,553 | - | - | 1,202,553 |
| Total long-term liabilities | 6,957,671 | 12,435,791 | (12,435,791) | 6,957,671 |
| TOTAL LIABILITIES | 37,203,628 | 40,077,135 | (51,277,990) | 26,002,773 |
| CONTINGENCIES | ||||
| SHAREHOLDERS' EQUITY (DEFICIT) | 194,220,204 |
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
According to Cornwell Quality Tools' 2025 Franchise Disclosure Document, the company's total current liabilities are presented in a consolidated balance sheet. This sheet combines the liabilities of Cornwell Quality Tools Company and its subsidiary, CQT Kennedy, LLC, after eliminating intercompany transactions.
The consolidated total current liabilities for Cornwell Quality Tools is $19,045,102. This figure is derived from several components, including accounts payable of $14,661,121, the current portion of operating lease liabilities amounting to $562,857, accrued expenses totaling $3,462,293, deferred compensation of $125,226, and accrued taxes of $233,605.
For a prospective franchisee, understanding the current liabilities of Cornwell Quality Tools provides insight into the company's short-term financial obligations. These liabilities represent debts and obligations due within one year, indicating the company's immediate financial commitments. Monitoring these liabilities can help assess the company's financial stability and its ability to meet its short-term obligations. A high level of current liabilities relative to current assets may indicate potential liquidity issues, which could affect the franchisor's ability to support its franchisees.