What was the deferred income tax expense for 1-800-GOT-JUNK? for the period ended 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
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 deferred income tax expense for the period ended May 31, 2025, was $59,707. This figure is part of the consolidated statements of cash flows, specifically under the operating activities section. For comparison, the deferred income tax expense for the same period in 2024 was $32,952.
Deferred income tax expense arises from temporary differences between the book value of assets and liabilities and their tax bases. These differences can result in future taxable or deductible amounts. A deferred income tax expense indicates that the company expects to pay more in income taxes in the future due to these temporary differences reversing.
For a prospective 1-800-GOT-JUNK? franchisee, understanding deferred income tax is crucial for assessing the company's financial health and future tax obligations. While this expense does not represent an immediate cash outflow, it signals future tax liabilities that could impact profitability. Franchisees should consult with financial advisors to understand the implications of deferred income taxes on their investment and operational strategies.
It's also important to note that these figures are unaudited and expressed in United States dollars. The accompanying notes to the consolidated financial statements provide additional context and details regarding the calculation and composition of deferred income tax assets and liabilities.