What were the total current assets for Mr. Sandless as of December 31, 2022?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
vernance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Monis Siddiqui, CPA P.C.
Bellerose, NY April 28, 2023
MR. SANDLESS FRANCHISE, LLC BALANCE SHEETS
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2022 | 2021 | |
| Current Assets | ||
| Cash | $ 8,760 | $ 17,509 |
| Accounts receivabl |
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 as of December 31, 2022, were $148,908. The current assets included cash of $8,760, accounts receivable of $45,783, inventory valued at $11,865, and $82,500 due from a related party.
Understanding the composition of current assets is crucial for prospective franchisees. A significant portion of Mr. Sandless's current assets in 2022 was 'Due from related party,' which totaled $82,500. This indicates that a substantial amount of the company's short-term assets was tied to transactions with affiliated entities. Franchisees should inquire about the nature of these related-party transactions and their potential impact on the company's liquidity and financial stability.
In 2022, Mr. Sandless also had $8,760 in cash, $45,783 in accounts receivable, and $11,865 in inventory. Accounts receivable represents money owed to Mr. Sandless by its customers, while inventory consists of the products available for sale. Monitoring these components of current assets can provide insights into the company's operational efficiency and ability to meet its short-term obligations. A high level of accounts receivable may indicate difficulties in collecting payments, while a large inventory may suggest challenges in managing stock levels.
Overall, the current asset composition provides a snapshot of Mr. Sandless's financial health and operational activities. Prospective franchisees should carefully analyze these figures, ask clarifying questions about related-party transactions, and assess the company's ability to manage its assets effectively.