What was the total amount of accounts payable and accrued expenses for Mr. Sandless at the end of 2021?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||||
|---|---|---|---|---|
| YEARS ENDED DECEMBER 31 | 2024 | 2023 | ||
| Current Assets | ||||
| Cash | $ | 35,452 | $ | 50,575 |
| Accounts receivable | 41,949 | 49,667 | ||
| Inventory | 8,013 | 8,013 | ||
| Due from related party | 300 | 64,122 | ||
| Total Current Assets | 85,714 | 172,377 | ||
| Property and Equipment-net | 44,492 | 64,898 | ||
| Security deposit | 2,000 | 2,000 | ||
| Total Assets | $ | 132,206 | $ | 239,275 |
| LIABILITIES AND MEMBERS' (DEFICIT) | ||||
| Current Liabilities | ||||
| Accounts payable and accrued expenses | $ | 4,275 | $ | 244 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the total accounts payable and accrued expenses for the company at the end of 2021 was $1,115. This figure represents the short-term liabilities Mr. Sandless had outstanding to its suppliers, vendors, and other creditors as of December 31, 2021.
For a prospective franchisee, understanding the franchisor's accounts payable and accrued expenses can provide insight into the company's short-term financial health and its ability to manage its current obligations. A low figure, such as the $1,115 reported for 2021, might suggest that Mr. Sandless is effectively managing its short-term liabilities.
However, it is important to consider this figure in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of Mr. Sandless's financial stability. Franchisees should also review the trend of accounts payable and accrued expenses over multiple years to identify any significant changes or potential issues.