What was the total amount of Stretch Zone's accounts payable as of December 31, 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Beach, Florida
April 29, 2024
Balance Sheets
| December 31, | |||
|---|---|---|---|
| 2023 | 2022 | ||
| ASSETS | |||
| Current assets: | |||
| Cash | $ 3,083,795 | $ 6,160,442 | |
| Accounts receivable | 883,442 | 639,602 | |
| Furniture inventory | 25,040 | 51,091 | |
| Due from related parties | 10,558 | 48,182 | |
| Contract asset | 6,475 | 3,700 | |
| Celebrity endorsement and marketing, net | 131,056 | 106,650 | |
| Prepaid expenses | 72,397 | 55,276 | |
| Total current assets | 4,212,763 | 7,064,943 | |
| Property and equipment, net | 27,989 | 34,966 | |
| Celebrity endorsement and marketing, net, long-term | 476,783 | 213,300 | |
| Contract asset, long-term | 48,408 | 29,600 | |
| Operating lease, right of use assets | 620,498 | 780,911 | |
| Security deposits | 36,155 | 36,155 | |
| Total assets | $ 5,422,596 | $ 8,159,875 | |
| LIABILITIES AND MEMBER'S DEFICIT | |||
| Current liabilities: | |||
| Accounts payable | $ 669,263 | $ 401,780 | |
| Accrued expenses | 75,203 | 9,424 | |
| Term note, current | 1,710,305 | - | |
| Deferred revenue, current | 1,360,541 | 1,395,170 | |
| Due to related party | 413 | 11,021 | |
| Operating lease liabilities, current | 182,981 | 161,310 | |
| UAR liability | - | 17,897,523 | |
| Total current liabilities | 3,998,706 | 19,876,228 | |
| Term note - long-term, net of debt issuance costs | 37,463,521 | - | |
| Operating lease liabilities, long-term | 504,830 | 687,811 | |
| Deferred revenue, long-term | 15,166,441 | 11,438,985 | |
| Total liabilities | 57,133,498 | 32,003,024 | |
| Commitments and contingencies (see Note I) | |||
| MEMBER'S DEFICIT |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the total accounts payable as of December 31, 2023, was $669,263. This figure represents the amount Stretch Zone owed to its suppliers and other creditors at that specific point in time. Accounts payable are current liabilities, meaning they are typically due within a year.
For a prospective Stretch Zone franchisee, understanding the accounts payable figure provides insight into the company's short-term financial obligations. A high accounts payable balance relative to assets could indicate that Stretch Zone is relying heavily on credit to finance its operations, which might pose a risk if the company faces financial difficulties. Conversely, a lower balance might suggest better cash flow management.
It's important to note that accounts payable is just one aspect of Stretch Zone's overall financial health. Franchisees should review the complete financial statements, including the balance sheet, income statement, and cash flow statement, to gain a comprehensive understanding of the company's financial position and performance. Additionally, comparing these figures to previous years and industry benchmarks can provide valuable context.