What were the total current assets for 1 800 Packouts as of December 3, 2022?
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, the company's total current assets as of December 3, 2022, were $8,807,937. This figure represents the sum of 1 800 Packouts's cash, restricted cash, accounts receivable (net of allowance for doubtful accounts), current portion of contract assets, and prepaid and other current assets.
For a prospective franchisee, understanding the composition and value of current assets is crucial. Current assets are those that can be readily converted into cash within a year, indicating the company's short-term financial health and liquidity. A substantial amount in current assets suggests that 1 800 Packouts has sufficient resources to cover its immediate liabilities and operational expenses.
It's also useful to compare the 2022 figure to the corresponding figure from the previous year. The FDD states that total current assets as of December 3, 2021, were $3,164,297. This comparison shows a significant increase in current assets from 2021 to 2022, which could indicate improved financial performance or strategic asset management by 1 800 Packouts. A potential franchisee might want to inquire about the reasons for this increase to better understand the company's financial trajectory.
Furthermore, the FDD lists specific components of current assets, such as cash ($3,760,121), restricted cash ($543,616), and accounts receivable ($2,360,599). Reviewing these individual line items provides a more detailed view of where 1 800 Packouts's liquid assets are concentrated. For example, a high accounts receivable balance might warrant further investigation into the company's credit policies and collection efficiency.