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What was the amount of accounts payable for Ledgers in 2022?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

o 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.

Bernard Robinson & Company, I.S.P.

Raleigh, North Carolina April 28, 2025

${\bf LOYALTY; BUSINESS; SERVICES,; LLC; (FORMERLY; FIDE; HOLDING,; LLC)}$

Balance Sheets

December 31, 2024, 2023 and 2022

2 Assets
2024 2023 2022
Current Assets: S
Cash and cash equivalents $ 424,085 $ 181,077 $ 264,411
Royalty receivables 3,190 3,302 -
Notes receivable, current 40,760 229,901
Total Current Assets 427,275 225,139 494,312
Non-Current Assets:
Notes receivable, less current portion = 634,000
Due from related parties 630,180 1,229,516 1,320,815
Deferred tax asset 715,000 611,000 513,000
Total Non-Current Assets 1,345,180 1,840,516 2,467,815
Total Assets $ 1,772,455 $ 2,065,655 $ 2,962,127
Liabilities and Members' Equity
Current Liabilities:
Accounts payable $ 15,010 $ 15,010 $ 125,974
Accrued expenses 4,755 9,975 5,152
Due to related parties 852,180 737,180 305,000
Deferred revenue - current 24,000 94,000

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, the accounts payable for 2022 was $125,974. This figure represents the company's short-term liabilities or obligations to its creditors. It is the amount Ledgers owed to its suppliers and other parties for goods and services received but not yet paid for as of the end of 2022.

Accounts payable is a crucial metric for assessing a company's financial health. A high accounts payable balance could indicate that Ledgers is taking advantage of favorable credit terms from its suppliers, effectively using their money to finance its operations in the short term. However, it could also signal potential cash flow problems if the company struggles to meet its payment obligations.

In addition to the overall accounts payable, the FDD also provides a breakdown of specific accounts payable to related parties. For example, Ledgers owed Zoomin Groomin $150,000 and ATAX, LLC $155,000 in 2022. Reviewing these specific payables can give a prospective franchisee insight into the nature of Ledgers' relationships with other entities and the types of transactions it engages in.

Prospective franchisees should analyze these figures in conjunction with other financial data in the FDD, such as revenue, expenses, and cash flow, to gain a comprehensive understanding of Ledgers' financial position and its ability to manage its short-term liabilities. It is also advisable to compare these figures to industry benchmarks to assess whether Ledgers' accounts payable levels are within a reasonable range for similar businesses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.