What was the amount of Floors To Go's accounts receivable at the beginning of the year 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
e the receivables have been outstanding, historical collection experience, current market conditions and forecasted economic and business environments. Amounts that are deemed to be uncollectible are written off against the allowance for credit losses. The expense associated with the allowance for credit lo
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 receivable at the beginning of the year 2023 was $383,451. This figure represents the amount of money owed to Floors To Go by its customers or franchisees for goods or services provided on credit. Accounts receivable are a crucial asset for any business, as they reflect the company's ability to generate revenue and manage its credit policies effectively. The amount of accounts receivable can fluctuate based on sales volume, payment terms, and the creditworthiness of customers.
For a prospective Floors To Go franchisee, understanding the franchisor's accounts receivable is important for assessing the financial health and stability of the company. A high level of accounts receivable might indicate that Floors To Go is having difficulty collecting payments from its customers, which could impact its cash flow and profitability. Conversely, a low level of accounts receivable could suggest that Floors To Go has strong credit management practices and is able to collect payments in a timely manner.
It is also worth noting that the FDD includes details about how Floors To Go manages its accounts receivable, including its policies for estimating and accounting for credit losses. According to the notes to the financial statements, accounts receivable are customer obligations due under normal trade terms, generally requiring payment within 30 to 60 days from the invoice date. Floors To Go estimates an allowance for expected credit losses based on the amount it expects to collect from customers, considering factors such as the length of time the receivables have been outstanding, historical collection experience, current market conditions, and forecasted economic and business environments. This information can help a prospective franchisee understand the risks associated with extending credit to customers and the measures that Floors To Go takes to mitigate those risks.