What was the amount of short-term investment for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
May 31 May 31
Cash provided by (used in):
Operating: Net income for the period
$ 288,999 $ 266,526 Items not involving cash: Amortization 9,288 20,952 Deferred income tax expense 59,707 32,952 Current income tax expense 25,716
Interest accrued for due to related parties 303,956 178,974 Bad debt
145,077 Income taxes paid (292,897) (69,581)
394,769 574,900 Changes in non-cash operating items: Accounts receivables 1,907,548 10,838,454 Due from related parties (1,340,526) (444,834) Prepaid expenses 237,174 13,745 Short-term investment (1,044) (538) Accounts payable and accrued liabilities (3,290,212) (541,944) Payable to franchisees (1,059,187) (10,075,702) Deferred revenue (37,475) (78,096) Due to related parties 5,710,937 2,797,879 Deposits 50,000
Withholding tax payable 226,407 (11,710)
2,798,391 3,072,154
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the short-term investment as of May 31, 2025, was a negative amount of $1,044. This figure is part of the consolidated financial statements and reflects changes in non-cash operating items during the period. It is important to note that the financial statements are unaudited.
This negative value for short-term investment suggests a decrease in this asset category during the period. Short-term investments are generally defined as investments that can be easily converted into cash, and according to the accounting policies outlined in the FDD, investments greater than three months are included in short-term investments, while those under three months are included in cash.
For a prospective franchisee, this particular figure may not be directly relevant to their initial investment. However, it provides insight into 1-800-GOT-JUNK?'s overall financial management and cash flow dynamics. Understanding these financial details can help a franchisee assess the financial health and stability of the franchisor. It would be prudent for a potential franchisee to seek clarification from 1-800-GOT-JUNK? regarding the reasons behind this decrease and its potential implications.