What was the reported amount of Deka Lash's accrued liabilities on 2/31/2023?
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 accrued liabilities as of February 31, 2023, were $425,702. This figure represents the total short-term obligations that Deka Lash had accumulated but not yet paid as of that date. These liabilities can include items such as wages, salaries, taxes, and other operational expenses.
For a prospective franchisee, understanding the franchisor's accrued liabilities can provide insights into the company's short-term financial health and its ability to manage its current obligations. A high level of accrued liabilities might indicate potential cash flow issues or a reliance on short-term financing, while a lower level could suggest more efficient financial management.
It's important to note that February 31 is not a valid date. The financial data presented may contain errors or be based on a different accounting period. A potential franchisee should verify the accuracy of this information and seek clarification from Deka Lash regarding the correct reporting dates and any potential discrepancies in the financial statements.