What were the total current assets of Hyper Kidz in 2021?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
it, significant audit findings, and certain internal control—related matters that we identified during the audit.
Ft. Collins, Colorado March 11, 2023
BOOMERANG FRANCHISE, LLC BALANCE SHEETS AS OF DECEMBER 31, 2022 AND 2021
| 2022 | 2021 |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the company's total current assets in 2021 were $20. This figure represents the sum of cash and equivalents and accounts receivable at that time. It is important to note that this value is significantly lower than the total current assets reported for 2022 ($25,382) and 2023 ($38,358), indicating a substantial change in the company's financial position over these years.
For a prospective franchisee, this information is crucial for understanding the financial health and stability of Hyper Kidz. The low current asset value in 2021, specifically $20, compared to subsequent years, may warrant further investigation. A potential franchisee should inquire about the reasons for this dramatic difference and how the company managed its operations with such limited current assets. Understanding the context behind these figures is essential for assessing the financial risks and opportunities associated with investing in a Hyper Kidz franchise.
Furthermore, the FDD also provides a snapshot of assets as of a different date, listing total current assets at $325,960.86. However, the document does not specify the year to which this figure corresponds. This discrepancy highlights the importance of carefully reviewing all financial statements and seeking clarification from the franchisor regarding any inconsistencies or missing information. A prospective franchisee should request detailed explanations for all reported financial data to make an informed investment decision.