What was the reported amount of Deka Lash's accounts payable on 12/31/2021?
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 company's accounts payable as of December 31, 2021, was $118,334.
Accounts payable represents the short-term liabilities or debts Deka Lash owes to its suppliers and other creditors. This figure reflects the outstanding bills and invoices that the company had not yet paid as of that date. Monitoring accounts payable is crucial for assessing a company's short-term financial health and its ability to meet its immediate obligations.
For a prospective franchisee, understanding the franchisor's accounts payable can provide insights into the financial management and stability of the company. A significant increase in accounts payable could indicate potential cash flow issues or difficulties in managing vendor relationships. Conversely, a stable or decreasing level of accounts payable may suggest efficient financial management. Reviewing these figures over time, as presented in the FDD, can help potential franchisees identify trends and assess the overall financial health of Deka Lash.