What was the value of Kitchen Solvers' contract assets 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 | - | - | 3,260 |
| Inventory | 28,642 | 14,106 | - |
| Prepaid expenses | 2,277 | 2,293 | - |
| Total current assets | 817,083 | 466,017 | 377,131 |
| Property and equipment: | |||
| Equipment and fixtures | 34,201 | 34,201 | 34,201 |
| Technology equipment and software | 109,640 | 109,640 | 109,640 |
| Machinery and equipment | 86,429 | 73,253 | - |
| Vehicles | 6,500 | - | - |
| Leasehold improvements | 33,841 | - | - |
| Totals | 270,611 | 217,094 | 143,841 |
| Less - Accumulated depreciation | (156,768) | (145,888) | (139,333) |
| Net property and equipment | 113,843 | 71,206 | 4,508 |
| Other assets: | |||
| Territory held for sale | 12,798 | 12,798 | 12,798 |
| Contract assets | 787,811 | 746,214 | 659,193 |
| Right of use asset - Operating leases | 13,203 | 53,324 | 63,586 |
| Goodwill | 366,651 | 366,6 |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company's contract assets are divided into current and non-current assets. The value of current contract assets for Kitchen Solvers in 2024 was $138,404, while the value of non-current contract assets was $787,811.
Contract assets typically represent revenue that Kitchen Solvers has earned but not yet received payment for. These amounts are expected to be converted into cash within a year for current assets, while non-current assets may take longer to be realized. Understanding the nature and collectibility of these contract assets is important for assessing the financial health of Kitchen Solvers.
Prospective franchisees should consider these figures in the context of Kitchen Solvers' overall financial performance and consult with a financial advisor to fully understand the implications of contract assets and liabilities. Reviewing the notes to the financial statements can provide additional details on how these assets are valued and managed.