What was the total value of Golden Krust Caribbean Restaurant's current assets in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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CliftonLarsonAllen LLP CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Shareholders Golden Krust Franchising, Inc. White Plains, New York
Opinion
We have audited the accompanying financial statements of Golden Krust Franchising, Inc., which comprise the consolidated balance sheet as of December 31, 2022, and the related consolidated statements of operations and comprehensive income (loss), changes in shareholders' deficit, and cash flows for the year then ended, and the related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Golden Krust Franchising, Inc. as of December 31, 2022, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the consolidated balance sheet as of December 31, 2022, shows the company's current assets totaled $7,487,934. This figure is a snapshot of the company's liquid assets and resources that are expected to be converted into cash within one year. These assets include cash and cash equivalents, accounts receivable, inventory, and other current assets.
Understanding the composition and value of current assets is crucial for prospective franchisees. It provides insight into the company's short-term financial health and its ability to meet its immediate obligations. A healthy current asset position suggests that Golden Krust Caribbean Restaurant is managing its working capital effectively and has sufficient liquidity to cover its short-term liabilities.
For a potential franchisee, this information is valuable in assessing the financial stability of the franchisor. While current assets alone do not provide a complete picture of the company's overall financial health, they are an important indicator of its ability to support its franchisees and manage its day-to-day operations. It would be prudent for a prospective franchisee to analyze these figures in conjunction with other financial metrics and to seek professional financial advice to fully understand the implications.