For Precision Door Service, what was the amount of principal payments received in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| as of December 31, 2023 and allowance for | | | | doubtful accounts of $379 as of December 31, 2022 | | | | Total trade notes receivable, net | $ 24,751 | $ 25,730 |
Notes to Combined Financial Statements ($000's)
An analysis of the changes in trade notes receivable is as follows:
| For the years ended December 31, | 2023 | 2022 | |------------------------------------------------|--------------------|----------| | | | | | Balance at beginning of period | $ 26,275 $ | 28,389 | | Notes receivable, contributed, net | 1,652 | - | | Principal payments received | (16,293) | (13,699) | | Notes issued | 15,050 | 12,808 | | Net write-offs | (1,370) | (1,223) | | Gross trade notes receivable, at end of period | 25,314 | 26,275 | | Allowance for credit losses | (563) | - | | Allowance for doubtful accounts | - | (545) | | Net trade notes receivable, at end of period | $ 24,751 $ | 25,730 | An analysis of the changes in the trade notes receivable allowance is as follows:
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Allowance, beginning of period | $ 545 | $ 447 |
| Provisions for bad |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the principal payments received in 2023 were presented in two tables. One table indicates that the principal payments received were $(16,293), while the other table states that the principal payments received were $(16,605).
It is important to note that these values are presented as negative numbers, indicated by the parentheses. This is a standard accounting practice to denote cash outflows or reductions in assets. In this context, it signifies the principal payments that Precision Door Service received, which reduced the notes receivable balance.
A prospective franchisee should seek clarification from Precision Door Service regarding the discrepancy between the two reported figures for principal payments received in 2023. Understanding the nature of these notes and payments is crucial for assessing the financial health and operational efficiency of Precision Door Service.