What was the total value of Management Recruiters' accounts payable as of December 31, 2021?
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 company's accounts payable as of December 31, 2021, totaled $1,126,000. This figure represents the amount of money Management Recruiters owed to its suppliers and other creditors at that specific point in time. Accounts payable are a current liability, meaning they are typically due within one year.
For a prospective Management Recruiters franchisee, understanding the company's accounts payable can provide insights into its short-term financial obligations and overall financial health. A high level of accounts payable might indicate that the company is relying heavily on credit from its suppliers, while a low level could suggest strong cash flow management. However, it is essential to analyze this figure in conjunction with other financial metrics to get a comprehensive view.
It's also worth noting the context of this figure within the broader financial landscape of Management Recruiters. Reviewing trends in accounts payable over multiple years, as well as comparing them to industry benchmarks, can offer a more nuanced understanding of the company's financial practices and stability. Additionally, prospective franchisees may want to inquire about the company's payment terms with its suppliers to assess any potential risks or opportunities related to accounts payable management.