What is the relationship between 'Cash and cash equivalents' and 'Total current assets' for Belocal?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | ||
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ | 7,231,415 |
| Prepaid expenses | 727,353 | |
| Prepaid taxes | 2,013 | |
| Due from affiliate | 4,217,245 | |
| Total current assets | 12,178,026 |
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, cash and cash equivalents make up a significant portion of the company's total current assets. As of June 30, 2025, Belocal reported cash and cash equivalents of $7,231,415. Total current assets, which include cash and cash equivalents, prepaid expenses, prepaid taxes, and amounts due from affiliates, totaled $12,178,026.
This means that cash and cash equivalents represent approximately 59.38% of Belocal's total current assets. This indicates a strong liquidity position for Belocal, as a substantial portion of its current assets are readily available in cash or can be quickly converted to cash.
For a prospective Belocal franchisee, this information suggests that the company maintains a healthy cash reserve, which can be a positive indicator of financial stability. However, it is important for potential franchisees to conduct their own due diligence and consider other factors, such as liabilities and overall financial performance, to gain a comprehensive understanding of Belocal's financial health.