What was the reported cash amount for 1 800 Packouts' current assets?
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 findings, and certain internal control related matters that we identified during the audit.
April 23, 2025
| (1) | 2024 | 2023 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ | 3,690,691 | $ 1,455,349 |
| Restricted cash | - | 840,143 | |
| Accounts receivable, net of an allowance for credit losses | |||
| of $74,296 and $105,953, respectively | 6,102,611 | 3,565,178 | |
| Other | 820,000 | - | |
| current | |||
| receivable | |||
| Current | 1,797,429 | 1,382,859 | |
| portion | |||
| of | |||
| contract | |||
| assets | |||
| Prepaid and other current assets | 1,803,912 | 1,537,556 | |
| Total current assets | 14,214,643 | 8,781,085 | |
| Goodwill, net | 52,556,496 | 66,184,756 | |
| Intangible assets, net | 45,678,810 | 50,358,496 | |
| Contract assets, net of current portion | 13,317,603 | 10,981,453 | |
| Operating lease right-of-use assets | 1,603,081 | 1,272,436 | |
| Other assets | 2,206,748 | 828,551 | |
| Total assets | $ | 129,577,381 | $ 138,406,777 |
| Liabilities and Members' Equity | |||
| Current liabilities: |
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's cash and total current assets are detailed in the provided financial statements. Specifically, for the year 2024, 1 800 Packouts reported cash of $3,690,691 and total current assets of $14,214,643. In the preceding year, 2023, the company reported cash of $1,455,349 and total current assets of $8,781,085.
These figures provide insight into the company's liquidity and short-term financial health. Cash represents the most liquid asset, readily available to meet immediate obligations. Current assets, on the other hand, include cash, accounts receivable, prepaid expenses, and other assets expected to be converted into cash within one year. A higher level of current assets relative to current liabilities generally indicates a stronger ability to meet short-term obligations.
For a prospective 1 800 Packouts franchisee, understanding these figures is crucial for assessing the financial stability of the franchisor. While these are historical figures and not a guarantee of future performance, they offer a benchmark for evaluating the franchisor's financial management and overall health. It is important to consider these figures in conjunction with other financial metrics and qualitative factors when making an investment decision.
It is also worth noting the significant increase in both cash and total current assets from 2023 to 2024. This could be due to a variety of factors, such as increased sales, improved collections, or strategic financial management decisions. A prospective franchisee may want to inquire about the reasons for this increase to gain a better understanding of the company's financial performance.