What was the Total Current Assets for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
i LLP
Denver, Colorado April 10, 2024
Balance Sheets
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 6,991,649 $ | 2,376,316 |
| Marketable Securities - At Fair Market Value | 634,869 | 528,625 |
| Accounts Receivable - Net of Allowance for | ||
| Credit Losses of $50,000 and $40,000, Respectively | 569,660 | 717,990 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the company's total current assets as of December 31, 2023, were $8,397,404. This figure represents the sum of Craters & Freighters's assets that are expected to be converted into cash or used up within one year. These assets include cash and cash equivalents, marketable securities, accounts receivable (net of allowance for credit losses), and prepaid expenses.
For a prospective franchisee, understanding the composition and value of current assets is crucial. A high level of current assets suggests that Craters & Freighters has sufficient liquidity to meet its short-term obligations. This can be an indicator of financial stability and the ability to support its franchisees. The specific components, such as the amount of cash versus accounts receivable, can provide further insights into the company's operational efficiency and cash flow management.
It is important to note that while a high level of current assets is generally positive, it should be evaluated in conjunction with the company's current liabilities and overall financial health. A detailed review of the balance sheet and related financial statements, including the notes, is essential to gain a comprehensive understanding of Craters & Freighters's financial position.