What was the accrued liabilities amount for Deka Lash in 2/31/2022?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
s used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about DL Franchising, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, amount other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
The Mumford Group Bountiful, Utah
February 24, 2024
| 1 | 2/31/2023 | . 1 | 2/31/2022 | 7 1 | 12/31/2021 | |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents Accounts receivable, net of allowance for doubtful | $ | 402,347 | S | 415,665 | 5 | 507,842 |
| accounts of $28,000, $6,718 and $6,718, respectively | 250,199 | 716,829 | 420,834 | |||
| Prepaid expenses | 139,044 | 186,830 | 293,204 | |||
| Inventory | 662,468 | 751,095 | 884,592 | |||
| Accrued interest - notes receivable | 1.618 | |||||
| Notes receivable - related parties | 514,485 | 99,990 | 14,470 | |||
| Current portion of notes receivable | 13,414 | 29,950 | ||||
| Current maturities of deferred direct franchising costs | _ | 569,298 | _ | 564,211 | _ | 510,978 |
| TOTAL CURRENT ASSETS | 2,551,255 | 2,766,188 | Ξ | 2,631,920 | ||
| PROPERTY AND EQUIPMENT, at cost | 140,284 | 200,047 | 103,776 | |||
| Less: accumulated depreciation | _ | (119,092) | _ | (101,144) | _ | (87,705 |
| TOTAL PROPERTY AND EQUIPMENT | _ | 21,192 | 98,903 | _ | 16,071 | |
| OTHER ASSETS | ||||||
| Intangible assets, net | 34,891 | 50,141 | 51,672 | |||
| Notes receivable, net of current portion | 17,500 | 74,100 | ||||
| Deferred direct franchising costs, net of current | 2,593,893 | 3,072,873 | 3,048,017 | |||
| Deposits | _ | _ | 11,010 | _ | 3,719 | |
| TOTAL OTHER ASSETS | _ | 2,646,284 | 3,208,124 | _ | 3,103,408 | |
| TOTAL ASSETS | $ | 5,218,731 | $ | 6,073,215 | $ | 5,751,399 |
| LIABILITIES AND MEMB | ER'S | CAPITAL | ||||
| CURRENT LIABILITIES | ||||||
| Accounts payable | 5 | 372,771 | 5 | 143,996 | 5 | 118,334 |
| Accrued liabilities | 425,702 | 491,506 | 405,831 | |||
| Current maturities of deferred franchise fees | 1,159,901 | 1,183,930 | 1,08 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the accrued liabilities for the period ending February 31, 2022, was $491,506. This figure represents the company's short-term financial obligations that have been incurred but not yet paid. These liabilities can include items such as wages, salaries, taxes, and other operational expenses.
For a prospective Deka Lash franchisee, understanding the accrued liabilities is crucial as it provides insight into the company's short-term financial health and obligations. A high level of accrued liabilities relative to assets could indicate potential financial strain, while a lower level might suggest better financial management. However, it's important to note that accrued liabilities are a normal part of business operations, and the specific amount should be evaluated in the context of the company's overall financial performance and industry benchmarks.
It is important for potential franchisees to review the complete financial statements and consult with a financial advisor to fully understand the implications of accrued liabilities and other financial metrics. This will help in making an informed decision about investing in a Deka Lash franchise.