What was the total value of Management Recruiters' current assets as of December 31, 2020?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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HireQuest, Inc. Consolidated Balance Sheets
| December 31, 2021 | December 31, 2020 | |||
|---|---|---|---|---|
| ASSETS | ||||
| Current assets | ||||
| Cash | $ | 1,255,520 | $ | 13,667,434 |
| Accounts receivable, net of allowance for doubtful accounts | 38,239,036 | 21,344,499 | ||
| Notes receivable | 1,481,200 | 2,178,299 | ||
| Prepaid expenses, deposits, and other assets | 659,403 | 344,091 | ||
| Prepaid workers' compensation | 369,215 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the company's total current assets as of December 31, 2020, were valued at $38,968,906. Current assets include cash, accounts receivable, notes receivable, prepaid expenses, deposits, other assets, and prepaid workers' compensation.
For a prospective franchisee, understanding the composition and value of current assets provides insight into the company's short-term financial health and liquidity. A higher value of current assets suggests that Management Recruiters has sufficient resources to cover its short-term obligations and invest in growth opportunities.
Specifically, the FDD lists the components of current assets for 2020 as: cash ($13,667,434), accounts receivable ($21,344,499), notes receivable ($2,178,299), prepaid expenses, deposits, and other assets ($344,091), and prepaid workers' compensation ($1,434,583). Reviewing these figures allows potential franchisees to assess the quality and reliability of these assets, such as the collectability of accounts receivable and the liquidity of other assets.