What was the reported amount of accounts receivable for Crisp & Green as of December 31, 2023?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
s but did change how the allowance for credit losses is determined.
NOTE 2 ACCOUNTS RECEIVABLE
Accounts receivable consists of the following at December 31:
| Franchisees | $ 504,399 | $ 2,148,675 | $ | 744,194 |
|---|---|---|---|---|
| Parent | 15,430 | 15,782 | - | |
| Total | $ 519,829 | $ 2,164,457 | $ | 744,194 |
Accounts receivable balance as of December 31
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2023, was reported as $519,829. The FDD also provides figures for accounts receivable for previous years, which were $2,164,457 as of December 31, 2022, $744,194 as of December 31, 2021, and $85,375 as of January 1, 2021.
Accounts receivable represents the money owed to Crisp & Green by its customers or franchisees for goods or services delivered but not yet paid for. Monitoring the accounts receivable is important for assessing the financial health and operational efficiency of Crisp & Green. A significant increase in accounts receivable could indicate potential issues with collecting payments or changes in payment terms offered to franchisees.
Prospective franchisees should consider these figures in the context of Crisp & Green's overall financial performance and growth strategy. Understanding the trend in accounts receivable, along with other financial metrics, can provide insights into the company's ability to manage its cash flow and maintain financial stability. It is also worth noting that the company adopted a new accounting standard for estimating credit losses on financial assets, effective January 1, 2023, which may impact how accounts receivable is valued and reported.
Franchisees might want to inquire about the typical payment terms offered to franchisees, the procedures for managing and collecting accounts receivable, and any historical trends in bad debt or uncollectible accounts. This information can help a franchisee better understand the financial dynamics of the Crisp & Green franchise system and assess the potential risks and opportunities associated with investing in the franchise.