factual

What were the total current assets for Expense Reduction Analysts in 2023?

Expense_Reduction_Analysts Franchise · 2025 FDD

Answer from 2025 FDD Document

d scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

CliftonLarsonAllen LLP

Clifton Larson Allen LLP

Milwaukee, Wisconsin April 18, 2024

2023 (restated) 2022
ASSETS -
CURRENT ASSETS
Cash and Cash Equivalents $ 1,251,718 $ 1,144,589
Accounts Receivable, Net 444,102 186,685

Source: Item 23 — RECEIPTS (FDD pages 58–215)

What This Means (2025 FDD)

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the company's total current assets in 2023 were $3,415,359. The FDD also provides a breakdown of the current assets, including cash and cash equivalents of $1,251,718, accounts receivable (net) of $444,102, prepaid expenses of $85,996, prepaid incremental franchise costs of $393,234, prepaid taxes of $235,161, and due from related parties totaling $1,005,148.

Understanding the composition of current assets is crucial for prospective Expense Reduction Analysts franchisees. Current assets are those that can be readily converted into cash within a year, indicating the company's short-term financial health and liquidity. A substantial portion of Expense Reduction Analysts' current assets is tied up in 'Due from Related Parties,' which suggests financial interactions with affiliated entities. Franchisees should inquire about the nature and terms of these related-party transactions to assess any potential risks or dependencies.

In addition, a significant amount is held in 'Prepaid Incremental Franchise Costs,' which may relate to expenses the company has paid upfront related to franchise development. Reviewing these figures in comparison to previous years, as well as understanding the details behind related party transactions, can give a potential franchisee a clearer picture of the financial stability of Expense Reduction Analysts.

Overall, while the provided figures offer a snapshot of Expense Reduction Analysts' financial position, prospective franchisees should conduct thorough due diligence. This includes scrutinizing the audited financial statements, comparing these figures to industry benchmarks, and seeking professional financial advice to fully understand the implications for their investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.