How does 1 800 Packouts define 'current assets' in its financial reporting?
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' 2025 Franchise Disclosure Document, current assets are defined as including cash, restricted cash, accounts receivable (net of allowance for credit losses), the current portion of contract assets, and prepaid and other current assets. The FDD provides figures for these assets as of 2023 and 2022.
Specifically, the 2023 balance sheet lists cash at $1,338,811, restricted cash at $840,143, accounts receivable (net of an allowance for credit losses of $105,953 and $58,660 respectively) at $3,532,277, the current portion of contract assets at $1,382,859, and prepaid and other current assets at $1,460,144. This totals $8,554,234 in current assets for 2023.
For 2022, the balance sheet lists cash at $3,760,121, restricted cash at $543,616, accounts receivable (net of an allowance for credit losses of $105,953 and $58,660 respectively) at $2,360,599, the current portion of contract assets at $1,350,919 and prepaid and other current assets at $792,682. This totals $8,807,937 in current assets for 2022. Reviewing these figures allows potential franchisees to understand the composition and value of 1 800 Packouts's current assets, which are essential for assessing the company's short-term financial health and liquidity.