What was the increase (decrease) in notes receivable for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
nd 2022.
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GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net Income | $ | 82,149 | $ 1,141,393 |
| Adjustments to Reconcile Net Income to Net Cash | |||
| Used by Operating Activities: | |||
| Depreciation and Amortization Expense | 71,983 | 91,007 | |
| Noncash Lease Expense | 4,432 | 54,540 | |
| Bad Debt Expense | 606,734 | 196,574 | |
| Change in Allowance for Notes Receivable | - | 14,999 | |
| Loss on Disposal of Equipment | 92,339 | 3,400 | |
| (Increase) Decrease in Operating Assets: | |||
| Accounts Receivable | (614,033) | (477,332) | |
| Inventory | 5,837 | 3,715 | |
| Prepaid Expenses | 2,638 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Golden Krust Caribbean Restaurant does not explicitly state the increase or decrease in notes receivable. However, it does include a table showing changes in operating assets. According to the table, the change in allowance for notes receivable in 2023 was $0, compared to $14,999 in 2022.
It is important to note that this line item refers to the allowance for notes receivable, which is an estimate of the amount of notes receivable that may not be collected. It is not the same as the total value of notes receivable. The table also includes a line for bad debt expense, which was $606,734 in 2023 and $196,574 in 2022.
To determine the actual increase or decrease in notes receivable, a prospective Golden Krust Caribbean Restaurant franchisee should request further clarification from the franchisor. Specifically, they should ask for the beginning and ending balances of notes receivable for both 2022 and 2023. This information would allow them to calculate the net change in notes receivable during 2023.