What was the value of Deka Lash's notes receivable, net of current portion, on 2/31/2023?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| 1 | 2/31/2023 | . 1 | 2/31/2022 | 7 1 | 12/31/2021 | |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| OTHER ASSETS | ||||||
| Notes receivable, net of current portion | 17,500 | 74,100 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the value of notes receivable, net of current portion, was $17,500 on 2/31/2023. This figure represents the amount of money owed to Deka Lash through notes receivable, after subtracting the portion of those notes expected to be collected within one year.
For a prospective franchisee, understanding the notes receivable is crucial as it reflects the financial health and lending activities of Deka Lash. A higher value of notes receivable, net of current portion, could indicate that Deka Lash has extended significant credit to related parties or other entities, with repayment expected beyond the current year.
However, it's important to note that the collectability of these receivables can impact Deka Lash's financial stability. Franchisees should inquire about the terms, risks, and parties involved in these notes to assess the potential impact on Deka Lash's overall financial condition. Furthermore, the FDD also shows that on 2/31/2022, the notes receivable, net of current portion, was $74,100.