What was the total value of Flowerama's current assets as of July 2, 2023?
Flowerama Franchise · 2024 FDDAnswer from 2024 FDD Document
imates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Flowerama of America, Inc.'s (a wholly owned subsidiary of 1-800 Flowers Retail, Inc.) ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those char
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–77)
What This Means (2024 FDD)
According to Flowerama's 2024 Franchise Disclosure Document, the company's total current assets as of July 2, 2023, were valued at $1,430,149. These assets include cash, accounts receivable (net of allowance for doubtful accounts), inventories, and prepaid expenses. Understanding the composition and value of current assets is crucial for prospective franchisees as it provides insight into the company's short-term financial health and liquidity.
Specifically, the FDD lists the following components of current assets as of July 2, 2023: cash of $929,338, accounts receivable (net of allowance for doubtful accounts) of $67,753, inventories of $431,468, and prepaid expenses of $1,590. These figures offer a detailed snapshot of the resources Flowerama had readily available to meet its immediate obligations and fund its day-to-day operations.
For a potential franchisee, this information is valuable in assessing Flowerama's ability to manage its working capital effectively. A strong current asset position suggests that Flowerama is well-equipped to handle its short-term liabilities and invest in growth opportunities. However, it is important to analyze these figures in conjunction with the company's current liabilities and overall financial performance to gain a comprehensive understanding of its financial stability.