What was the total value of Craters & Freighters' current assets in the earlier year presented?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| Prepaid Expenses | 201,226 | 34,611 |
| Total Current Assets | 8,397,404 | 3,657,542 |
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's total current assets in the earlier year were $3,657,542. Current assets are resources that a company expects to convert into cash within one year. These assets are essential for funding day-to-day operations and meeting short-term obligations.
The current assets consist of cash and cash equivalents, marketable securities, accounts receivable, and prepaid expenses. Cash and cash equivalents totaled $2,376,316. Marketable securities were valued at $528,625. The net accounts receivable, after allowances for credit losses of $40,000, amounted to $717,990. Prepaid expenses accounted for $34,611 of the total.
Prospective franchisees should consider the composition and value of these assets when evaluating the financial health and stability of Craters & Freighters. A strong current asset position indicates the company's ability to manage its short-term liabilities and invest in future growth. Reviewing these figures in comparison to previous years and industry benchmarks can provide valuable insights into the company's financial performance and risk profile.