What was the total amount of accrued expenses 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 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 LLC
April 30, 2023
| As of December 3: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets | ||||
| Current assets: | ||||
| Cash | $ | 3,760,121 | $ | 1,614,389 |
| Restricted cash | 543,616 | 439,024 | ||
| Accounts receivable, net of an allowance for doubtful accounts | ||||
| of $58,660 and $32,710, respectively | 2,360,599 | 907,535 | ||
| Current portion of contract assets | 1,350,919 | 169,463 | ||
| Prepaid and other current assets | 792,682 | 33,886 | ||
| Total current assets | 8,807,937 | 3,164,297 | ||
| Goodwill, net | 63,918,327 | 39,262,725 | ||
| Intangible assets, net | 54,137,918 | 33,635,333 | ||
| Investment in unconsolidated subsidiary | - | 597,537 | ||
| Contract assets, net of current portion | 9,616,933 | 379,746 | ||
| Operating lease right-of-use asset | 1,153,787 | - | ||
| Other assets | _ | 703,934 | 293,037 | |
| Total assets | $ | 138,338,836 | $ | 77,332,675 |
| Liabilities and Members' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | 602,708 | $ | 333,610 | |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the total accrued expenses as of December 3, 2021, were $336,864. This figure represents the company's short-term liabilities, which include obligations such as salaries, rent, utilities, and taxes that have been incurred but not yet paid. For a prospective franchisee, understanding the accrued expenses of 1 800 Packouts provides insight into the company's financial health and its ability to manage its short-term liabilities.
Accrued expenses are a normal part of business operations, reflecting the timing difference between when expenses are incurred and when they are actually paid. Monitoring these expenses is crucial for assessing a company's liquidity and overall financial stability. A significant increase in accrued expenses could indicate potential cash flow problems or difficulties in meeting short-term obligations. Therefore, franchisees should pay close attention to trends in accrued expenses over time to gauge the financial risk associated with investing in 1 800 Packouts.
In the context of franchising, it's important to compare these figures with industry benchmarks to determine whether 1 800 Packouts' accrued expenses are within a reasonable range. High accrued expenses relative to revenue could signal inefficiencies or financial strain, whereas low accrued expenses might indicate effective cost management. Prospective franchisees should also inquire about the specific types of expenses included in this category to gain a more detailed understanding of the company's financial obligations. This due diligence can help potential investors make informed decisions about the financial viability of the franchise opportunity.