What was the value of inventories for Cornwell Quality Tools in 2022?
Cornwell_Quality_Tools Franchise · 2025 FDDAnswer from 2025 FDD Document
| Raw materials | $ | 5,749,223 | $ 5,882,360 | |----------------------------|-----------|------------|------------------| | Work in process | | 3,037,244 | 3,503,205 | | Finished goods | | 36,364,498 45,150,965 | 40,537,244 49,922,809 | | Less: Obsolescence reserve | | 613,052 | 392,256 | | | $ | 44,537,913 | $ 49,530,553 | The income tax effect has been provided on the increase/decrease in inventory value at the statutory federal and state tax rates. The tax effect increased the provision for income taxes by $540,500 in 2023 and $685,000 in
Source: Item 23 — RECEIPT (FDD pages 101–373)
What This Means (2025 FDD)
I am unable to provide the specific value of inventories for Cornwell Quality Tools in 2022 according to the 2025 Franchise Disclosure Document. While the document mentions inventory valuation methods and the impact of income taxes on inventory value changes, it does not state the actual inventory value for that year. The FDD discusses the use of LIFO (last-in, first-out) for financial statements and includes an independent auditor's report on the consolidated financial statements, but it does not disclose the specific inventory value.
Specifically, the excerpts provided discuss the tax effects on inventory and the company's accounting methods, but they do not include a balance sheet or income statement that would detail the value of inventories. The auditor's report confirms that financial statements were audited, but the actual values are not present in the provided excerpts. The excerpts also mention consolidated statements using the FIFO (first-in, first-out) method for inventory valuation, but these are for additional analysis and do not provide the specific inventory value for 2022.
To obtain the inventory value for 2022, a prospective franchisee should request the complete audited financial statements from Cornwell Quality Tools. These statements would typically include a balance sheet detailing assets, liabilities, and equity, with a specific line item for inventory value. Reviewing these statements would provide a clear understanding of the company's financial position and inventory management.