What was the accounts payable amount for Floors To Go as of December 31, 2023?
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 |
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, 2023, was $9,763. This figure represents the amount Floors To Go owed to its suppliers and other creditors at the end of the year. 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 its financial health and how it manages its short-term obligations. A high accounts payable balance might indicate that Floors To Go is taking longer to pay its bills, which could be a sign of cash flow issues. Conversely, a low balance, as is the case here, suggests that Floors To Go is managing its payments effectively.
It's important to note that accounts payable is just one aspect of a company's financial picture. A potential franchisee should review the complete financial statements, including the balance sheet, income statement, and cash flow statement, to get a comprehensive understanding of Floors To Go's financial condition. Additionally, comparing these figures over several years can reveal trends and potential areas of concern or strength.