What was the total amount of current assets for Mr. Sandless at the end of 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Muhammad Zubairy, CPA Valley Stream, NY April 2, 2024
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Current Assets | ||
| Cash | $ 50,575 | $ 8,760 |
| Accounts receivable | 49,667 | 45,783 |
| Inventory | 8,013 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the company's total current assets at the end of 2023 were $172,377. This figure represents the sum of Mr. Sandless's cash ($50,575), accounts receivable ($49,667), inventory ($8,013), prepaid expenses (which are listed as zero), and due from related party ($64,122) as of December 31, 2023.
For a prospective franchisee, understanding the composition of these current assets is crucial. Cash and accounts receivable are readily available or expected to convert to cash soon, indicating liquidity. Inventory reflects the value of supplies or products on hand, while 'due from related party' suggests transactions with affiliated entities.
Comparing the 2023 figure of $172,377 to the 2022 figure of $148,908 shows an increase in current assets. This could indicate improved financial health or increased business activity for Mr. Sandless. A potential franchisee should investigate the nature of the 'due from related party' to ensure these transactions are sound and do not pose a risk.
It is important to note that these figures are based on audited financial statements. Franchisees should review the complete financial statements and consult with a financial advisor to fully understand the financial condition of Mr. Sandless.