What was the total amount of current assets for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
May 31, 2025 and December 31, 2024
May 31 December 31
Notes
Assets
Current assets: Cash $ 11,635,584 $ 8,886,128 Short-term investment 103,622 102,578 Accounts receivable (net of allowance for credit losses: May 31, 2025 - $106,092 (2024 - $106,029)) 11,313,651 13,221,199 Prepaid expenses
82,279 319,453 Due from related parties 4,814,013 3,473,487 Income taxes recoverable
324,518 57,337
28,273,667 26,060,182
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 company's total current assets as of May 31, 2025, were $28,273,667. The balance sheet provides a snapshot of the company's financial health, outlining its assets, liabilities, and equity at a specific point in time. Current assets are those that can be converted into cash within a year, and this figure is an important indicator of 1-800-GOT-JUNK?'s short-term financial stability and liquidity.
Specifically, the current assets include several components. These are cash, short-term investments, accounts receivable (net of allowance for credit losses), prepaid expenses, due from related parties, and income taxes recoverable. Cash amounted to $11,635,584, short-term investments totaled $103,622, and accounts receivable (net of allowance for credit losses) was $11,313,651. Prepaid expenses were listed at $82,279, the amount due from related parties was $4,814,013, and income taxes recoverable were $324,518.
A prospective 1-800-GOT-JUNK? franchisee should consider the composition and quality of these current assets. For example, a high level of accounts receivable might indicate potential issues with collecting payments from customers, while a strong cash position suggests the company has ample resources to meet its immediate obligations. Monitoring these figures over time, in comparison to previous years, can reveal trends about 1-800-GOT-JUNK?'s financial performance and stability.
It is also worth noting that these are unaudited financial statements. As the FDD clearly states, "PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAS AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONTENT OR FORM." Therefore, while the information provides a general overview, potential franchisees should conduct their own due diligence and possibly seek professional financial advice to verify the accuracy and reliability of these figures.