What was the value of Kitchen Solvers' current contract assets in 2022?
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 company's current contract assets were valued at $98,129 in 2022. This figure is part of the company's overall financial health assessment, reflecting the value of services Kitchen Solvers has performed for which they have not yet received payment. These assets are considered 'current' because they are expected to be converted into cash within one year.
For a prospective Kitchen Solvers franchisee, understanding the contract assets is crucial because it provides insight into the company's revenue recognition practices and its ability to manage its working capital. A higher value of contract assets might indicate strong sales and project pipelines, but it also means that Kitchen Solvers is carrying a significant amount of unbilled revenue.
Franchisees should monitor these figures over time to identify trends and potential issues. A sudden increase in contract assets, for example, could signal delays in payment collection or project completion. Conversely, a decrease might indicate improved efficiency in billing and collections or a slowdown in new projects. Therefore, it's essential for franchisees to discuss these figures with Kitchen Solvers during their due diligence to fully understand their implications.