What was the total amount of current assets for Coffee News on December 31, 2023?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024, 2023 and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| ASSETS | ||||
| Current assets | ||||
| Cash | $ 64,135 | $ 66,796 | $ 94,422 | |
| Accounts receivable, net of reserve for current expected credit | ||||
| losses of $80,000 in 2024 and $120,000 in 2023 and 2022 | 26,049 | 38,558 | 23,979 | |
| Total current assets | 90,184 | 105,354 | 118,401 |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the company's total current assets on December 31, 2023, were $105,354. This figure represents the sum of Coffee News's cash and accounts receivable, net of reserve for current expected credit losses.
Understanding the composition of current assets is crucial for prospective franchisees. Cash provides immediate liquidity, while accounts receivable reflect money owed to Coffee News, with a deduction for potential credit losses. The reserve for credit losses indicates Coffee News's anticipation of potential uncollectible accounts, which can impact the actual cash flow.
Monitoring these figures over time, as presented in the table for 2022, 2023, and 2024, can help potential franchisees assess the financial health and stability of Coffee News. A consistent or growing trend in total current assets generally indicates a healthy financial position, while a declining trend may warrant further investigation.