What was the accounts payable amount for Floors To Go as of December 31, 2022?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
dgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company'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, among 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.
Balance Sheets
| December 31 | |||
|---|---|---|---|
| ASSETS | |||
| Current | 2023 | 2022 | |
| assets | |||
| Cash | $ 812,308 | $ 1,679,740 | |
| Accounts | |||
| receivable, | |||
| less | |||
| allowance | |||
| for | |||
| credit | |||
| losses | 461,463 | 383,451 | |
| of | |||
| $27,615 | |||
| ($19,131 | |||
| in | |||
| 2022) | |||
| Prepaid | 3,189 | 3,189 | |
| expenses | |||
| Total | 1,276,960 | 2,066,380 | |
| current | |||
| assets | |||
| Goodwill | 50,000 | 50,000 | |
| Total | $ 1,326,960 | $ 2,116,380 | |
| assets | |||
| LIABILITIES | |||
| AND | |||
| MEMBER'S | |||
| EQUITY | |||
| Liabilities | |||
| Accounts | $ |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the accounts payable as of December 31, 2022, was $15,030. This figure represents the amount Floors To Go owed to its suppliers and other creditors at that specific point in time. Accounts payable is a current liability, meaning these obligations are typically due within a year.
For a prospective franchisee, understanding the franchisor's accounts payable can provide insights into their financial management and relationships with suppliers. A high accounts payable balance might indicate that Floors To Go is taking advantage of supplier credit terms, while a low balance could suggest prompt payment practices. However, it's essential to consider this figure in relation to other financial metrics and industry benchmarks to get a comprehensive view.
It's also worth noting the trend in accounts payable. In 2023, Floors To Go's accounts payable decreased to $9,763. This decrease could be due to various factors, such as changes in payment terms, improved cash flow management, or a reduction in purchases from suppliers. A potential franchisee should inquire about the reasons behind such changes to better assess the franchisor's financial health and stability.