What was the total value of Mr. Sandless's accounts payable and accrued expenses at the end of 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Muhammad Zubairy, CPA Valley Stream, NY April 2, 2024
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Current Assets | ||
| Cash | $ 50,575 | $ 8,760 |
| Accounts receivable | 49,667 | 45,783 |
| Inventory | 8,013 | 11,865 |
| Prepaid expenses | — | — |
| Due from related party | 64,122 | 82,500 |
| Total Current Assets | 172,377 | 148,908 |
| Property and Equipment-net | 64,898 | 7,290 |
| Security deposit | 2,000 | 2,000 |
| Total Assets | $ 239,275 | $ 158,198 |
| LIABILITIES AND MEMBERS' (DEFICIT) | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ 244 | $ 144 |
| Due to related p |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the company's accounts payable and accrued expenses totaled $244 at the end of 2023. This figure is part of the company's balance sheet, which provides a snapshot of its assets, liabilities, and equity at a specific point in time. Reviewing these figures can help a prospective franchisee understand the company's short-term financial obligations.
Accounts payable and accrued expenses are current liabilities, representing obligations due within one year. Accounts payable typically include short-term debts to suppliers or vendors, while accrued expenses represent expenses that have been incurred but not yet paid, such as wages, utilities, or taxes. The relatively low amount of accounts payable and accrued expenses for Mr. Sandless in 2023 may indicate efficient management of short-term liabilities.
When evaluating a franchise opportunity, it is important for potential franchisees to carefully review the franchisor's financial statements, including the balance sheet, to assess its financial health and stability. Comparing these figures over multiple years can reveal trends and potential areas of concern. It is also advisable to consult with a financial advisor or accountant to gain a deeper understanding of the financial implications of investing in a Mr. Sandless franchise.