What was the total amount of Deka Lash's prepaid expenses on 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 total prepaid expenses as of 2/31/2022 were $186,830. This figure is part of the company's balance sheet, reflecting expenses paid in advance for goods or services to be received in the future. These prepaid expenses are considered current assets.
For a prospective Deka Lash franchisee, understanding the franchisor's financial statements is crucial. Prepaid expenses can include items like rent, insurance, or marketing fees paid in advance. The amount of prepaid expenses can indicate the company's financial health and how it manages its obligations.
It's important to note that the date listed in the document, 2/31/2022, is not a valid date, as February only has 28 days in a common year and 29 days in a leap year. This could be a typographical error, and prospective franchisees should verify this information with Deka Lash to ensure accurate financial data. Reviewing the balance sheets over several years, as presented in the FDD, allows potential franchisees to identify trends and assess the financial stability and management practices of Deka Lash.