What was the total amount of Kitchen Solvers' advances receivable in 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance Sheets | ||||||
|---|---|---|---|---|---|---|
| December 31, 2024, 2023, and 2022 | ||||||
| Assets | 2024 | 2023 | 2022 | |||
| Current assets: | ||||||
| Cash | $ 409,936 | $ 192,541 | $ 60,708 | |||
| Accounts receivable | 63,672 | 138,673 | 140,562 | |||
| Accounts receivable - related party | 174,152 | - | - | |||
| Contract assets - Current | 138,404 | 118,404 | 98,129 | |||
| Advances receivable | - | - | 74,472 | |||
| Other receivable | - | - | 3,260 | |||
| Inventory | 28,642 | 14,106 | - | |||
| Prepaid expenses | 2,277 | 2,293 | - | |||
| Total current assets | 817,083 | 466,017 | 377,131 |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the total amount of advances receivable in 2022 was $74,472. This figure is part of the company's assets listed on the balance sheets. Advances receivable represent money that Kitchen Solvers has advanced or prepaid to others, and which they expect to receive back in goods, services, or cash at a later date.
For a prospective franchisee, understanding the advances receivable can provide insight into Kitchen Solvers' financial management and relationships with suppliers or other parties. It indicates how much money the company has tied up in these types of advances. Monitoring this figure over time, as the balance sheets provide for 2023 and 2024 as well, can reveal trends in Kitchen Solvers' financial practices.
It's important to note that while advances receivable are considered assets, there is always a risk that the company may not receive the full value of the advance. Therefore, franchisees should consider this figure in the context of Kitchen Solvers' overall financial health and stability. Reviewing the balance sheets for multiple years can provide a more comprehensive understanding of the company's financial position.