What were the total current assets for Mr. Sandless as of December 31, 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 as of December 31, 2023, were $172,377. This figure represents the sum of several liquid assets the company held at that time. These assets include cash ($50,575), accounts receivable ($49,667), inventory ($8,013), and due from related party ($64,122).
For a prospective Mr. Sandless franchisee, understanding the composition and amount of current assets is crucial. Current assets are resources that Mr. Sandless can readily convert into cash within a year. A higher value of current assets relative to current liabilities generally indicates better short-term financial health and liquidity. This suggests that Mr. Sandless is capable of meeting its immediate financial obligations.
It is also useful to compare these figures with those from the previous year. In 2022, Mr. Sandless reported total current assets of $148,908. The increase to $172,377 in 2023 suggests a positive trend in the company's liquidity position. A potential franchisee should investigate the reasons for changes in each component of current assets (cash, receivables, inventory, etc.) to fully understand the company's financial dynamics.
Reviewing these figures in conjunction with Mr. Sandless's liabilities and overall financial statements will provide a more comprehensive view of the company's financial stability. Prospective franchisees should consult with a financial advisor to assess the implications of these financial metrics for their investment decision.