What is the total current assets for Gold Star Chili, Inc.?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Chili, Inc. | LLC | TCWW, LLC | Eliminations | Total | ||
|---|---|---|---|---|---|---|
| Current Assets | ||||||
| Cash | $ 437,267 | $ 909,375 | $ 244,320 | $ | - $ 1,590,962 | |
| Accounts Receivable, Less Allowance for | ||||||
| Expected Credit Losses of $896,732 | 905,238 | 2,002,485 | 4,130 | (1,981,263) | 930,590 | |
| Advance - Related Party | 3,441,832 | - | - | (3,441,832) | - | |
| Other Receivables | 21,704 | - | 1,502 | - | 23,206 | |
| Inventory | 980,151 | - | 27,923 | - | 1,008,074 | |
| Prepaid Expenses | 166,348 | 109,041 | 15,154 | (12,824) | 277,719 | |
| Total Current Assets | 5,952,540 | 3,020,901 | 293,029 | (5,435,919) | 3,830,551 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total current assets for Gold Star Chili, Inc. is $3,830,551. This figure is derived from the consolidating balance sheet as of December 31, 2024, and includes several components such as cash, accounts receivable (less allowance for expected credit losses), advances to related parties, other receivables, inventory, and prepaid expenses.
Specifically, the current assets are broken down into individual contributions from Gold Star Chili, Inc. ($5,952,540), GSC Properties, LLC ($3,020,901), and TCWW, LLC ($293,029). There is also a reduction of ($5,435,919) due to eliminations, which are internal accounting adjustments to avoid double-counting assets within the consolidated group.
For a prospective franchisee, understanding the composition of these current assets is crucial. It provides insight into the company's liquidity and short-term financial health. A significant portion of current assets in the form of cash and accounts receivable suggests a healthy operational cycle. However, it's also important to note the allowance for credit losses, which indicates the company's expectation of potential uncollectible accounts. Prepaid expenses represent payments made in advance for goods or services, which will be recognized as expenses in future periods. Inventory reflects the value of raw materials, work in progress, and finished goods available for sale.
Overall, the total current assets figure provides a snapshot of Gold Star's financial position and its ability to meet its short-term obligations. Franchisees should consider these figures in conjunction with other financial metrics to assess the overall financial stability and performance of Gold Star.