What was the amount of prepaid and other current assets for 1 800 Packouts as of December 3, 2021?
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 gove
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, as of December 3, 2021, the company's prepaid and other current assets totaled $33,886. This figure is part of the company's overall balance sheet, reflecting the value of assets that are expected to be converted into cash or used up within one year. These assets are distinct from long-term assets like goodwill or intangible assets.
For a prospective 1 800 Packouts franchisee, understanding the composition of current assets is crucial. Prepaid expenses typically include items like insurance premiums or rent that have been paid in advance. Other current assets can encompass a variety of items, such as inventory or supplies. The relatively low value of prepaid and other current assets in 2021 might suggest a conservative approach to advance payments or a lean inventory management strategy at that time.
It's important to note that this figure represents a snapshot in time and can fluctuate due to various factors, including changes in business operations, accounting practices, or economic conditions. Comparing the 2021 figure to the corresponding value in 2022 ($792,682) reveals a significant increase, which could be attributed to business growth, strategic investments, or changes in accounting methods. A potential franchisee should investigate the reasons behind such changes to gain a better understanding of the company's financial management and future prospects.