What was the reported amount for prepaid expenses under current assets for Mrcool?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | 2024 | 2023 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 141,212 | $ 847 |
| Accounts receivable | 299,762 | 0 |
| Prepaid expenses | 1,163 | 1,080 |
| Inventory | 677 | 0 |
| Total current assets | 442,814 | 1,927 |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the reported amount for prepaid expenses under current assets was $1,080 in 2023 and $1,163 in 2024. Prepaid expenses are payments a company makes for goods or services that will be received in the future. These are considered assets because Mrcool has already paid for them, but has not yet received the benefit.
For a prospective Mrcool franchisee, understanding prepaid expenses is important for assessing the company's financial health. Prepaid expenses can include items like rent, insurance, or advertising.
The increase in prepaid expenses from $1,080 in 2023 to $1,163 in 2024 could indicate Mrcool is investing more in future operations. Reviewing these figures in the context of Mrcool's overall financial statements can provide a more complete picture of its financial strategy and stability.