What was the amount of cash held by 1 800 Packouts as of December 3, 2022?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Tanner LLC
April 30, 2023
| As of December 3: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company held $3,760,121 in cash as of December 3, 2022. This figure is part of the company's current assets, which totaled $8,807,937 on that date. The FDD also lists restricted cash of $543,616 as a separate asset.
For a prospective franchisee, understanding the cash position of 1 800 Packouts is crucial as it reflects the company's liquidity and ability to meet its short-term obligations. A healthy cash balance can indicate financial stability and the capacity to support franchisees during challenging times. It also provides insight into the company's investment capabilities and potential for growth.
In addition to cash, the company's balance sheet includes other significant assets such as goodwill ($63,918,327) and intangible assets ($54,137,918). These figures suggest that a substantial portion of the company's value is tied to its brand reputation and intellectual property. Reviewing the trends in these asset values over time can provide a more comprehensive understanding of the company's financial health and performance.
It is important to note that while the cash balance provides a snapshot of the company's financial position at a specific point in time, it does not reflect the company's cash flow or profitability. Therefore, prospective franchisees should also review the company's income statement and cash flow statement to gain a more complete understanding of its financial performance.