How does 1 800 Packouts define 'current assets' for accounting purposes?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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 UC April 5, 2024
| As of Deci | mber 31 |
|---|---|
| ------------ | --------- |
| Assets Current assets: Current assets: S. 1,338,811 $ 3,760,121 S. 1,60,121 S. 1,338,811 $ 3,760,121 S. 1,338,811 $ 3,760,121 S. 1,338,811 $ 3,760,121 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,519 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 S. 1,350,739 | , | ||||
|---|---|---|---|---|---|
| Current assets: Cash $ 1,338,811 $ 3,760,121 Restricted cash 840,143 543,616 Accounts receivable, net of an allowance for credit losses of 5105,953 and 558,660, respectively 3,532,277 2,360,599 Current portion of contract assets 1,382,859 1,350,919 Prepaid and other current assets 1,460,144 792,682 Total current assets 8,554,234 8,807,937 Goodwill, net 56,518,636 63,918,327 Intangible assets, net 50,358,496 56,518,636 63,918,327 Intangible assets, net of current portion 10,981,453 9,616,933 Operating lease right-of-use assets 1,246,432 1,153,787 Other assets $ 128,366,106 $ 138,338,836 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, current assets are defined by the following categories: cash, restricted cash, accounts receivable (net of allowance for credit losses), current portion of contract assets, and prepaid and other current assets. The document provides figures for these assets as of 2023 and 2022.
Specifically, the 2023 cash holdings are listed as $1,338,811, while in 2022, they were $3,760,121. Restricted cash was $840,143 in 2023 and $543,616 in 2022. Accounts receivable, net of an allowance for credit losses of $105,953 in 2023 and $58,660 in 2022, amounted to $3,532,277 and $2,360,599, respectively. The current portion of contract assets was $1,382,859 in 2023 and $1,350,919 in 2022. Prepaid and other current assets totaled $1,460,144 in 2023 and $792,682 in 2022.
For a prospective 1 800 Packouts franchisee, understanding these components of current assets is crucial for assessing the company's financial health and stability. It provides insight into the company's liquidity and ability to meet its short-term obligations. Reviewing these figures over the two years allows potential franchisees to identify trends and evaluate the consistency of 1 800 Packouts's financial performance.
It's important to note that the 'allowance for credit losses' reduces the accounts receivable, reflecting the amount the company expects not to collect. Monitoring these allowances can provide insight into the creditworthiness of 1 800 Packouts's customer base. The total current assets were $8,554,234 in 2023 and $8,807,937 in 2022.