What was the net value of Deck Medic's accounts receivable in 2021?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
tely $110,883 and $125,496 in cash in its operating bank account respectively.
4. ACCOUNTS RECEIVABLES
At the years ended December 31, 2022 and 2021, Accounts Receivables consisted of the following:
| 2022 | 2021 | |
|---|---|---|
| initial franchise fees receivables | $25,530 | $28,955 |
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the net value of accounts receivable for Deck Medic in 2021 was $42,199. This figure represents the amount of money that Deck Medic expected to collect from its customers and franchisees after accounting for potential uncollectible accounts.
Accounts receivable are amounts due to Deck Medic from franchisees or customers for services rendered or products sold on credit. The 'net' value means that Deck Medic has already subtracted an allowance for doubtful accounts, which is an estimate of the amounts that may not be collected. This gives a more realistic view of what Deck Medic expects to receive.
For a prospective franchisee, understanding the accounts receivable can provide insight into Deck Medic's revenue collection efficiency and the creditworthiness of its customer base. A higher net accounts receivable suggests that Deck Medic is generally successful in collecting payments, while a lower number might indicate potential issues with payment collection or a more conservative approach to estimating doubtful accounts. This information, combined with other financial metrics, can help a franchisee assess the financial health and stability of Deck Medic.