What was the total amount of current liabilities for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Consolidated Financial Statements (Unaudited - Expressed in United States dollars) 1-800-GOT-JUNK? LLC For the 5-month period ended May 31, 2025 1-800-GOT-JUNK? LLC Consolidated Balance Sheets (Unaudited - Expressed in United States dollars)
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
Vehicles 102,172 111,460 Intangible asset 89,680 40,745 Deferred income tax assets 2,153,795 2,213,502
$ 30,619,314 $ 28,425,889
Liabilities and Member’s Equity
Current liabilities: Accounts payable and accrued liabilities $ 3,802,470 $ 7,092,682 Payable to franchisees
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 current liabilities as of May 31, 2025, included accounts payable and accrued liabilities of $3,802,470 and payable to franchisees. However, the amount payable to franchisees is not specified in this excerpt. Therefore, the total current liabilities cannot be precisely determined based on the provided information.
For a prospective franchisee, understanding the breakdown of current liabilities is crucial. It indicates the company's short-term financial obligations, such as payments due to suppliers (accounts payable), accrued expenses (like salaries or rent), and amounts owed to franchisees. A high level of current liabilities relative to current assets could indicate potential liquidity issues for 1-800-GOT-JUNK?.
It is important to note that the financial statements included in the FDD are unaudited. While this is permissible, prospective franchisees should exercise additional due diligence in reviewing these figures. They may want to consult with a financial advisor to fully understand the implications of 1-800-GOT-JUNK?'s financial position.
To gain a clearer picture, a potential franchisee should ask 1-800-GOT-JUNK? for a complete breakdown of all current liabilities as of May 31, 2025, including the specific amount payable to franchisees. This information, along with a review of the company's audited financial statements, will provide a more comprehensive understanding of the company's financial health.