What are the components of prepaid and other current assets for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
opinion on the effectiveness of the Company'sinternal 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 finding
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company's balance sheet includes a line item for "Prepaid and other current assets." In 2024, this was valued at $1,803,912, and in 2023, it was valued at $1,537,556.
While the FDD lists the total value of these assets, it does not specify the individual components that make up this category. Prepaid expenses are costs paid in advance for goods or services to be received in the future, while other current assets can include a variety of items expected to be converted to cash within one year.
For a prospective 1 800 Packouts franchisee, understanding the specific items included in "Prepaid and other current assets" is important for assessing the company's financial health and working capital management. It would be prudent to ask 1 800 Packouts for a detailed breakdown of these assets to gain a clearer picture of their nature and liquidity.