How are 'Accounting term assets and liabilities' calculated for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------|---------------------------------------------------------------------------------------|---------|------------|------|------------|-------|---------|--|--| | Net income (loss) $ (2,913) $ 1,477 $ (3,186) Adjustments to reconcile net loss to cash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amortization 489 1,691 3,506 Amortization of key money and contract costs 1,514 396 7 Amortization of contract liabilities 192 1,497 713 Deferred income taxes 1,112 (1,819) 654 Other income (expense), net 2 1 9 486 Other income (expense), net 3,111 (942) (50 Change in current assets and liabilities (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Account
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided financial statements for Sonesta Simply Suites include a line item referred to as 'Change in current assets and liabilities' within the cash flow statement, but do not explicitly detail how this specific accounting term is calculated. The document provides figures for this line item for the years 2022, 2023, and 2024.
Specifically, the 'Change in current assets and liabilities' is used to reconcile net income (loss) to net cash provided by (used in) operating activities. For 2024, the change is listed as ($3,111), for 2023 it is ($942), and for 2022 it is ($50). These figures represent the net effect of changes in various current assets and liabilities on the company's cash flow. A negative number indicates that the changes in these accounts have resulted in a decrease in cash flow from operating activities.
While the FDD lists the overall change, it does not break down the individual components that contribute to this figure. Instead, it lists changes in specific asset and liability accounts separately, such as accounts receivable, prepaid expenses, other long-term assets, accounts payable, accrued compensation, and other liabilities. To fully understand how the 'Change in current assets and liabilities' is derived, a prospective franchisee would need to request a detailed breakdown of this calculation from Sonesta Simply Suites. This would involve understanding how each specific current asset and liability account has changed during the period and how those changes impact the overall cash flow.