What was the amount of accounts payable for Kidokinetics in 2023?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| Liabilities and Members' Equity (Deficit) | ||||||
| Current liabilities | ||||||
| S | 748,939 | $ | 354,239 | S | 68,939 | |
| Accounts payable | Þ | 138,810 | Ф | 41,609 | $ | 08,939 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the accounts payable for the company in 2023 was $138,810. This figure represents the amount Kidokinetics owed to its suppliers and other creditors at the end of the 2023 fiscal year. Accounts payable are considered current liabilities, meaning they are typically due within one year.
For a prospective franchisee, understanding the franchisor's accounts payable can provide insights into its short-term financial obligations and overall financial health. A high accounts payable balance relative to its assets or revenues could indicate that Kidokinetics is relying heavily on credit to finance its operations, which may pose a risk if the company faces difficulties in meeting its obligations. Conversely, a low accounts payable balance might suggest that Kidokinetics has strong cash flow management and is able to pay its suppliers promptly.
It's important to note that accounts payable is just one aspect of a company's financial picture. A prospective Kidokinetics franchisee should review the entire financial statement, including the balance sheet, income statement, and cash flow statement, to gain a comprehensive understanding of the franchisor's financial condition and performance. Additionally, it would be prudent to compare Kidokinetics's financial ratios and trends to those of other franchise companies in the same industry to assess its relative financial strength and stability.