What was the current portion of Deka Lash's notes receivable as of 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 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the current portion of notes receivable as of February 31, 2022, was $29,950. This figure represents the amount of notes receivable that Deka Lash expected to collect within one year from that date. Notes receivable are amounts owed to Deka Lash by other parties, typically from loans or financing arrangements.
For a prospective franchisee, understanding the notes receivable can provide insight into Deka Lash's financial dealings and how it manages its assets. The current portion indicates the short-term liquidity Deka Lash anticipates from these receivables. A higher current portion might suggest a healthier short-term cash flow, while a lower amount could indicate potential challenges in collecting debts promptly.
It's important to note that the notes receivable are with related parties. These related-party transactions require careful scrutiny, as they may not always be conducted at arm's length. A franchisee should seek clarification from Deka Lash regarding the nature of these related-party notes, the terms of repayment, and the creditworthiness of the related parties involved. Understanding these details will help a franchisee assess the potential risks and benefits associated with these financial arrangements.