What was the total value of current assets for Golden Krust Caribbean Restaurant?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| Cash Paid for Amounts Included in the Measurement | | | | |---|---|---|---| | of Lease Liabilities | | | | | Operating Cash Flows from Operating Leases | $ 98,247 | | $ 87,184 | | ROU Assets Obtained in Exchange for New | | | | | Operating Lease Liabilities | $ | - | $ 686,739 |
| | 2023 | 2022 | | |---|---|---|---| | Cash Paid for: | | | | | Interest | $ 97,929 | | $ 47,923 | | Income Taxes | $ 51,489 | | $ 1,414 |
| ASSETS | |||
|---|---|---|---|
| CURRENT ASSETS: | |||
| Cash and restricted cash | $ 1,357,728 | $ 451,809 | |
| Accounts receivable, net of allowance for doubtful accounts | |||
| of $1,020,611 and $824,037 | 995,682 | 714,924 | |
| Employee Retention Credit receivable | - | 580,958 | |
| Notes receivable current portion | 23,773 | 18,148 | |
| Inventory | 33,854 | 37,569 | |
| Prepaid expenses | 10,593 | 46,501 | |
| Total Current Assets | 2,421,630 | 1,849,909 | |
| PROPERTY AND EQUIPMENT, Net | 229,140 | 269,584 | |
| ROU OPERATING ASSETS |
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company's total current assets were valued at $2,421,630 in 2023 and $1,849,909 in 2022. Current assets include cash, accounts receivable, employee retention credit receivable, notes receivable, inventory, and prepaid expenses.
A prospective franchisee should understand the composition and changes in current assets, as these reflect the company's ability to meet its short-term obligations. Monitoring these assets can provide insights into the company's liquidity and operational efficiency. For instance, a significant increase in accounts receivable could indicate potential issues with collecting payments, while a decrease in inventory might suggest improved inventory management or potential stockout risks.
The FDD provides a breakdown of the specific components contributing to the total current assets. This level of detail allows potential franchisees to assess the quality and reliability of these assets. Reviewing the notes on accounts receivable, which are net of allowances for doubtful accounts ($1,020,611 in 2023 and $824,037 in 2022), is particularly important. These allowances indicate the company's expectations regarding potential uncollectible amounts.
Overall, the current asset values and their components offer valuable insights into Golden Krust Caribbean Restaurant's financial health and operational performance. Prospective franchisees should carefully analyze these figures and compare them to industry benchmarks to make informed decisions.