What was the amount of accrued expenses for Floors To Go as of December 31, 2024?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
nditions 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 | 2024 | 2023 | |||
| Current assets | |||||
| Cash | $ | 973,148 | $ | 812,308 | |
| Accounts receivable, less allowance for credit | |||||
| losses of approximately $33,500 ($27,500 in 2023) | 471,369 | 461,463 | |||
| Prepaid expenses | 2,475 | 3,189 | |||
| Total current assets | 1,446,992 | 1,276,960 | |||
| Goodwill | 50,000 | 50,000 | |||
| Total assets | $ | 1,496,992 | $ | 1,3 |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the company's accrued expenses as of December 31, 2024, were $284,241. This figure represents the total of expenses that Floors To Go had incurred but not yet paid as of that date. In comparison, the accrued expenses as of December 31, 2023, were $260,669.
Accrued expenses are a common liability on a company's balance sheet, reflecting obligations for goods or services received for which payment is not yet due. For a prospective Floors To Go franchisee, understanding the franchisor's accrued expenses can provide insight into its short-term financial obligations and overall financial management. Monitoring the trend in accrued expenses from year to year can indicate whether the company is managing its expenses effectively.
It's important to note that accrued expenses are just one component of Floors To Go's total liabilities. A potential franchisee should review the complete financial statements, including the balance sheets, income statements, and cash flow statements, along with the accompanying notes, to gain a comprehensive understanding of the franchisor's financial condition and performance. This will help in assessing the financial stability and potential risks associated with investing in a Floors To Go franchise.