What is the total value of current assets for Best Brains?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Current Assets Cash & cash equivalents | 1 | 262,049.67 | 154,275.10 |
| Inventory | _ | 417,347.00 | 289,840.00 |
| Trade Receivables | 2 | 2,038,407.38 | 1,549,975.79 |
| Other Current Assets Total Currrent Assets | 3 | 255,726.78 2,973,530.83 | 225,576.84 2,219,667.73 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, as of December 31, 2023, the company's total current assets were valued at $2,973,530.83. This figure represents the sum of Best Brains' cash and cash equivalents, inventory, trade receivables, and other current assets.
For a prospective franchisee, understanding the composition and value of current assets is crucial. Current assets are resources that Best Brains expects to convert into cash within one year. A substantial amount of current assets suggests that Best Brains has sufficient liquid resources to meet its short-term obligations and invest in growth opportunities. The major components of current assets for Best Brains include cash and cash equivalents ($262,049.67), inventory ($417,347.00), and trade receivables ($2,038,407.38).
It is important to note that the financial health of the franchisor can impact franchisees. For example, if Best Brains has a significant portion of its assets tied up in accounts receivable, it indicates that a substantial amount of its revenue is yet to be collected. Franchisees should consider these factors and conduct their own due diligence to assess the financial stability of Best Brains. Reviewing the trends in these asset values from previous years, as presented in the comparative data, can provide further insights into the financial management and performance of Best Brains.