Based on the combined bank balances you gave me on March 7th, it was $41,500. However, according to the February and March financials, the net loss was $9,300 and $8,000 respectively. Based on this trend, I am curious how the remaining balance decreased by $32,900 ($41,500-$8,600=$32,900) in two and half months (March 7th to May 23rd). Was the salon stores’ performance poor in April and May? Or did we pay any fees, rents, or expense in advance?
Here is Maria’s response.
Yes, besides covering for payroll shortages for his other salons he paid back a total of $8,633.33 to fti (FTI is the entity that covered your payroll while your deposit was in transit because we had to make sure your employees received payment), $7,605.00 of back rent (February, March and April) for Bay shore and $8801.70 for back rent for surf city.
I am still confused with it. So we did not pay any expense in advance? Can I simply say that I lost $32,900 in from March 7 to May 23? If that is true, it seems that the net loss did not change, and even lose more. But the revenue has been growing in fact. So I cannot understand it. In addition, I think I put additional funds in time, and it should have not occurred any payment delay or back rent. The monthly rent of Surf City is $2080, how it became $8801 for three months’ rent expense?
I just checked the financials. In January financials and previous financials, each store’s rent was showed on the sheet: $2,711.5 (Carolina Beach), $2,080 (Surf City), and $2,520 (Bayshore). In February financials, $0 (Carolina Beach), $2,520 (Surf City), and $0 (Bayshore). In March financials, $0 (Carolina Beach), $9,283.4 (Surf City), and $0 (Bayshore). It makes me confused because I assume that each store’s rent should be as same as before. Also, the $9,283.4 is very strange. It is not the sum of three stores’ rent for one month, and it is not the sum of any single store’s rent for three months either. Based on the numbers, Surf City has paid $13,883.4 ($2080+2520+9283.4=13883.4) from January to March, which is too high. So I am confused. There must be something wrong with the financials. Can we pay the rent every month in the future, just like what we did before? It would be much clearer to understand the expense.
Mr. Jacky payment delay did occur because when we transitioned for one accounting firm to the new one we faced a couple of issues with your account. First we were not able to access your account online, which is where accounting handles all your payments. It took considerable time to get this straighten out simply because the last accounting firm, Suncoast, was uncooperative in this process. They were the originators of the online accounts and need to forward the access to us which they made extremely difficult to do. Sabrina had to physically travel to their location, in order to get help with the switch.
At the end, we had to create new online accounts which is hard to do when the only authorize person to do so is Sabrina. If you recall, Sabrina was traveling heavily in January and February working in the salons. After we got access, we realized some rent payments were not made by Suncoast. This is the reason you see these payments for back rent being done. Now everything is in order and we should be paying your rent on time, but please understand that our goal is to always salvage and maintain your investments.
Let me have her send you an itemized list so you can see it all item for item.
You must be logged in to post a comment.