What was the total amount of prepaid and other current assets 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 gove
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, as of December 3, 2021, the company's prepaid and other current assets totaled $33,886. This figure is part of the company's overall current assets, which totaled $3,164,297 as of the same date. Understanding the composition of current assets, including prepaid expenses, is crucial for assessing a company's short-term financial health.
Prepaid assets typically include expenses that 1 800 Packouts has paid in advance, such as insurance premiums or rent. These are considered assets because they represent future benefits the company will receive. Other current assets can include items like inventory or short-term investments. The relatively low figure for prepaid and other current assets in 2021 might reflect the company's operational scale or accounting practices at that time.
For a prospective franchisee, this information provides insight into how 1 800 Packouts manages its short-term resources. Comparing these figures to those of other similar franchises can help in evaluating the financial efficiency and stability of 1 800 Packouts. It's also worth noting the significant increase in prepaid and other current assets by 2022, which could indicate changes in the company's operational strategies or accounting methods. A potential franchisee should inquire about the reasons for such changes to fully understand their implications.
It is important to note that the figures presented are specific to the company's financial position as of the dates mentioned and may not be indicative of future performance. A thorough review of the entire financial statement, along with professional financial advice, is recommended for any investment decision.