What was the amount of Management Recruiters' accounts payable as of December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
We have served as the Company's auditor since 2017.
/s/ Plante & Moran, PLLC
Denver, Colorado March 21, 2023
HireQuest, Inc. Consolidated Balance Sheets
| (in thousands except par value data) | December 31, 2022 | December 31, 2021 | |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash | $ | 3,049 | $ 1,256 |
| Accounts receivable, net of allowance for doubtful accounts | 45,728 | 38,239 | |
| Notes receivable | 817 | 1,481 | |
| Prepaid expenses, deposits, and other assets | 1,833 | 659 | |
| Prepaid workers' compensation | 503 | 369 | |
| Total current assets | 51,930 | 42,004 | |
| Property and equipment, net | 4,353 | 4,454 | |
| Workers' compensation claim payment deposit | 1,231 | 948 | |
| Franchise agreements, net | 23,144 | 18,848 | |
| Other intangible assets, net | 10,690 | 6,228 | |
| Goodwill | 5,870 | - | |
| Other assets | 325 | 334 | |
| Notes receivable, net of current portion and reserve | 2,675 | 2,686 | |
| Intangible assets held for sale - discontinued operations | 3,065 | 1,850 | |
| Total assets | $ | 103,283 | $ 77,352 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities | |||
| Accounts payable | $ | 448 | $ 1,126 |
| Line of credit | 12,543 | 171 | |
| Term loans payable | 704 | 210 | |
| Other current liabilities | 3,408 | 2,658 | |
| Accrued wages, benefits and payroll taxes | 5,602 | 3,687 | |
| Due to franchisees | 9,846 | 7,496 | |
| Risk management incentive program liability | 877 | 1,632 | |
| Workers' compensation claims liability | 3,352 | 4,491 | |
| Total current liabilities | 36,780 | 21,471 | |
| Term loans payable, net of current portion | 3,291 | 2,856 | |
| Workers' compensation claims liability, net of current portion | 2,573 | 3,759 | |
| Deferred tax liability | 60 | 473 | |
| Franchisee deposits | 2,325 | 2,058 | |
| Total liabilities | 45,029 | 30,617 | |
| Commitments and contingencies (Note 11) | |||
| Stockholders' equity | |||
| Preferred stock - $0.001 par value, 1,000 shares authorized; none issued | - | - | |
| Common stock - $0.001 par value, 30,000 shares authorized; 13,918 and 13,745 shares issued, respectively | 14 | 14 | |
| Additional paid-in capital | 32,844 | 30,472 | |
| Treasury stock, at cost - 40 shares | (146) | (146) | |
| Retained ear |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the accounts payable as of December 31, 2022, was $448,000. This figure represents the amount Management Recruiters owed to its suppliers and other creditors at that specific point in time. Accounts payable is a current liability, meaning these obligations are typically due within a year.
For a prospective Management Recruiters franchisee, understanding the accounts payable figure provides insight into the company's short-term financial obligations. A lower accounts payable balance might suggest that Management Recruiters is effectively managing its payments to vendors. However, it is important to consider this figure in relation to other financial metrics, such as accounts receivable and overall cash flow, to gain a comprehensive understanding of the company's financial health.
It's also worth noting the change in accounts payable from the previous year. The document indicates that accounts payable as of December 31, 2021, was $1,126,000. The decrease in accounts payable from 2021 to 2022 could be due to a variety of factors, such as changes in payment terms with suppliers, improved cash management practices, or a decrease in purchasing activity. A prospective franchisee should inquire about the reasons for this change to better assess the company's financial strategies and stability.