What was the total amount of Craters & Freighters' accounts payable as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| As of December 31, | 2024 | 2023 |
|---|---|---|
| 18 of December 31, | 2021 | 2023 |
| Current Liabilities: | ||
| Accounts Payable | $ 1,181,960 $ | 1,061,526 |
| Accrued Wages and Other Liabilities | 32,282 | 1,790 |
| Due to Related Party | 65,000 | - |
| Operating Lease Liability - Due Within One Year | 65,249 | 76,496 |
| Total Current Liabilities | 1,344,491 | 1,139,812 |
| Long Torm Liabilities | ||
| Long Term Liabilities: Due to Shareholder | 2,769,688 | |
| Operating Lease Liability - Due After One Year | - | 67,655 |
| Total Long-Term Liabilities | - | 2,837,373 |
| Total Liabilities | 1,344,491 | 3,977,155 |
| Shareholder's Equity | ||
| Common Stock, No Par Value; 1,000,000 Shares | ||
| Authorized; 1,000,000 Shares Issued and Outstanding | 100 | 100 |
| Additional Paid-in Capital | 800 | 800 |
| Retained Earnings | 6,458,972 | 5,413,239 |
| Total Shareholder's Equity | 6,459,872 | 5,414,139 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | $ 7,804,363 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's accounts payable as of December 31, 2023, totaled $1,061,526. This figure represents the amount Craters & Freighters owed to its suppliers and other creditors for short-term obligations incurred during the normal course of business. Accounts payable are considered current liabilities, reflecting obligations due within one year.
For a prospective franchisee, understanding the franchisor's accounts payable can provide insights into its financial health and payment practices. A high accounts payable balance relative to revenue could indicate potential cash flow challenges or reliance on supplier credit. Conversely, a low balance might suggest efficient cash management or strong supplier relationships.
It's important to note that accounts payable is just one component of Craters & Freighters' overall liabilities. As of December 31, 2023, Craters & Freighters' total current liabilities were $1,139,812 and total liabilities amounted to $3,977,155, which includes long-term liabilities such as amounts due to a shareholder and operating lease liabilities. Reviewing the complete financial statements, including the balance sheet, income statement, and cash flow statement, is essential for a comprehensive assessment of Craters & Freighters' financial condition.