What were City Publications' total current assets reported as of December 31, 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ntial doubt about CITY PUBLICATIONS FRANCHISE GROUP, INC.'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.
Ft. Collins, Colorado April 20, 2025
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED BALANCE SHEETS
| AS OF DECEMBER 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| ASSETS: | |||
| CURRENT ASSETS | |||
| Cash and equivalents | $ 469,911 | $ 34,370 | |
| Accounts receivable | 6,166 | 10,184 | |
| TOTAL CURRENT ASSETS | 476,077 | 44,554 | |
| NON-CURRENT ASSETS | |||
| Property and equipment | 2,179 | 3,000 | |
| Other assets | 8,362 | 8,362 | |
| TOTAL ASSETS | $ 486,618 | $ 55,916 | |
| LIABILITIES AND SHAREHOLDERS' (DEFICIT): | |||
| CURRENT LIABILITIES | |||
| Accounts payable | $ 478,790 | $ 84,847 | |
| Non-refundable deferred franchise fees, current | 29,393 | 22,373 | |
| TOTAL CURRENT LIABILITIES | 508,183 | 107,220 | |
| NON-CURRENT LIABILITIES | |||
| Non-refundable deferred franchise fees | 52,433 | 34,306 | |
| TOTAL LIABILITIES | 560,616 | 141,526 | |
| SHAREHOLDERS' (DEFICIT) | |||
| Common stock, $1 par value, 100,000 shares authorized | |||
| 1,000 shares issued and outstanding | 1,000 | 1,000 | |
| Additional paid-in capital | 17,000 | 17,000 | |
| Retained earnings | 1,902,107 | 1,745,483 | |
| Due |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company's total current assets as of December 31, 2023, were $44,554. This figure represents the sum of City Publications' cash and equivalents ($34,370) and accounts receivable ($10,184) at that date.
For a prospective franchisee, understanding the franchisor's asset position is crucial. Low current assets may indicate potential financial instability, which could affect City Publications' ability to support its franchisees. It is important to note that while cash and accounts receivable are considered current assets, they are relatively low compared to current liabilities.
City Publications' balance sheet also shows that their total current liabilities as of December 31, 2023, were $107,220, significantly exceeding their total current assets of $44,554. This indicates a potential liquidity issue, where the company's short-term obligations are greater than its short-term assets. This could impact the level of support and resources City Publications can provide to new franchisees.
Prospective franchisees should carefully evaluate City Publications' financial statements, paying close attention to the relationship between current assets and current liabilities. It would be prudent to seek clarification from City Publications regarding their strategy for managing this liquidity gap and ensuring continued support for their franchise network. Consulting with a financial advisor to review these figures is also advisable.