What is the total value of Cornwell Quality Tools' long-term liabilities?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cornwell Quality Tools Company | CQT Kennedy, LLC | Eliminations | Consolidated | |
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | $ 24,468,881 | $ 3,574 | $ - | $ 24,472,455 |
| Accounts receivable, trade - Net | 8,665,002 | 456,704 | · - | 9,121,706 |
| Accounts receivable - Subsidiary | 22,032,569 | 8,513,823 | (30,546,392) | - |
| Notes receivable - Net | 2,609,030 | - | - | 2,609,030 |
| Finance receivables - Net | 19,007,487 | - | - | 19,007,487 |
| Inventories - Net | 27,812,344 | 5,345,831 | 33,158,175 | |
| Prepaid expenses and other assets | 1,310,393 | 34,313 | - | 1,344,706 |
| Refundable income taxes | 294,000 | MA. | - | 294,000 |
| Total current assets | 106,199,706 | 14,354,245 | (30,546,392) | 90,007,559 |
| NONCURRENT ASSETS | ||||
| Notes receivable, net of current portion | 9,718,752 | _ | _ | 9,718,752 |
| Finance receivables, net of current portion | 59,693,453 | = | _ | 59,693,453 |
| Note receivable - Subsidiary | 12,435,791 | - | (12,435,791) | , -,···- |
| Investment - Subsidiary | 1,000,000 | - | (1,000,000) | ~ |
| Investments, designated | 158,562 | - | - | 158,562 |
| Property, plant and equipment - Net | 7,386,687 | 6,850,610 | - | 14,237,297 |
| Goodwill - Net | - | 4,029,783 | - | 4,029,783 |
| Deferred income tax asset | 4,064,000 | 4,064,000 | ||
| Total noncurrent assets | 94,457,245 | 10,880,393 | (13,435,791) | 91,901,847 |
| TOTAL ASSETS | $ 200,656,951 LIABILITIES AND SHAREHOL | $ 25,234,638 DERS' EQUITY | $ (43,982,183) | $ 181,909,406 |
| CURRENT LIABILITIES | ||||
| Accounts payable | $ 15,106,368 | $ 626,544 | $ - | $ 15,732,912 |
| Accounts payable - Parent | 8,513,823 | 22,032,569 | (30,546,392) | - |
| Current maturities of capital lease obligation | - | 1,476 | - | 1,476 |
| Current maturities of long-term debt | 488,004 | - | - | 488,004 |
| Accrued expenses | 2,680,265 | 224,483 | - | 2,904,748 |
| Deferred compensation | 116,950 | - | - | 116,950 |
| Accrued taxes | 141,910 | 56,317 | 198,227 | |
| Total current liabilities | 27,047,320 | 22,941,389 | (30,546,392) | 19,442,317 |
| LONG-TERM LIABILITIES | ||||
| Long-term debt, less current maturities | 2,480,663 | - | - | 2,480,663 |
| Note payable - Parent | = | 12,435,791 | (12,435,791) | - |
| Deferred compensation, less current portion | 1,255,166 | 1,255,166 | ||
| Total long-term liabilities | 3,735,829 | 12,435,791 | (12,435,791) | 3,735,829 |
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 long-term liabilities are detailed in the consolidated balance sheets. For Cornwell Quality Tools Company, the total long-term liabilities are listed as $3,735,829. When considering the consolidated figures, which include eliminations and the subsidiary CQT Kennedy, LLC, the total long-term liabilities amount to $3,735,829.
Prospective franchisees should note that long-term liabilities represent obligations due beyond the next year. These liabilities can include items such as long-term debt, deferred compensation, and other financial obligations. Understanding the nature and extent of these liabilities is crucial for assessing the financial stability and long-term solvency of Cornwell Quality Tools.
It's important for potential franchisees to review the accompanying notes to the consolidated financial statements for a comprehensive understanding of these liabilities. These notes provide additional details on the nature, terms, and maturity dates of the long-term debt and other obligations, offering a clearer picture of the company's financial commitments. This information is vital for making an informed investment decision.