What were the total current assets of Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
w Jersey February 29, 2024
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and Restricted Cash | $ 768,706 | $ 1,357,728 |
| Accounts Receivable, Net of Allowance for Doubtful Accounts | ||
| of $1,627,345 and $1,020,611 | 1,002,981 | 995,682 |
| Notes Receivable, Current Portion | 18,000 | 23,773 |
| Inventory | 28,017 | 33,854 |
| Prepaid Expenses | 7,955 | 10,593 |
| Total Current Assets |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant's total current assets in 2023 were $1,825,659. The FDD also lists the individual components that comprise this total. These include cash and restricted cash amounting to $768,706, net accounts receivable of $1,002,981 (after deducting allowances for doubtful accounts of $1,627,345), current portion of notes receivable at $18,000, inventory valued at $28,017, and prepaid expenses of $7,955.
Understanding the composition of current assets is crucial for prospective franchisees. Current assets are those that can be converted into cash within a year, indicating the company's short-term financial health and liquidity. A significant portion of Golden Krust Caribbean Restaurant's current assets is tied up in accounts receivable, which suggests the company extends credit to its customers. Franchisees should assess the risk associated with these receivables and the effectiveness of the company's collection policies.
In comparison to 2022, Golden Krust Caribbean Restaurant's total current assets decreased from $2,421,630 to $1,825,659 in 2023. This decrease is primarily due to a reduction in cash and restricted cash. Monitoring these trends over time can provide insights into the company's financial stability and its ability to meet its short-term obligations. Prospective franchisees should inquire about the reasons for these changes and how they might impact the franchisor's support and services.
Overall, the current asset figures provide a snapshot of Golden Krust Caribbean Restaurant's financial position. Potential franchisees should analyze these figures in conjunction with other financial data in the FDD, such as liabilities and expenses, to gain a comprehensive understanding of the company's financial health and stability. Consulting with a financial advisor is recommended to fully assess the implications of these financial statements.