What was the reported value of Kitchen Solvers' contract assets (current) in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
al statements as a whole.
Hancock & Robinson CPAs
La Crosse, Wisconsin
March 7, 2025
Balance Sheets
December 31, 2024, 2023, and 2022
| Assets | 2024 | 2023 | 2022 |
|---|---|---|---|
| Current assets: | |||
| Cash | $ 409,936 | $ 192,541 | $ 60,708 |
| Accounts receivable | 63,672 | 138,673 | 140,562 |
| Accounts receivable - related party | 174,152 | - | - |
| Contract assets - Current | 138,404 | 118,404 | 98,129 |
| Advances receivable | - | - | 74,472 |
| Other receivable | - | - |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the value of their contract assets (current) for the year 2024 was $138,404. This figure represents the current portion of assets arising from contracts with customers, reflecting work completed or goods transferred for which Kitchen Solvers has a right to payment.
For a prospective Kitchen Solvers franchisee, understanding contract assets is crucial. These assets typically arise when the franchisee has performed services but hasn't yet received payment. The current portion indicates assets expected to be realized within one year. Monitoring these assets helps franchisees manage their working capital and cash flow effectively.
It's important to note that contract assets are distinct from accounts receivable. Contract assets arise from performance obligations in a contract, while accounts receivable are unconditional rights to payment. Franchisees should ensure they have clear accounting practices to differentiate between these asset types. Reviewing the notes to the financial statements in Item 21 of the FDD can provide additional context and details about how Kitchen Solvers accounts for these assets.