What was the change in accounts receivable for 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
those charged with governance 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.
Charlottesville, Virginia
April 22, 2025
| 2024 | 2023 | |
|---|---|---|
| Asse |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the net accounts receivable in 2023 was $2,838,106. In 2024, the net accounts receivable was $3,218,426. This represents an increase of $380,320 in accounts receivable from 2023 to 2024. Accounts receivable represents money owed to 360 Painting for services already provided but not yet paid for.
For a prospective franchisee, this indicates the level of outstanding payments 360 Painting carries. A significant increase in accounts receivable could suggest potential challenges in collecting payments from customers, which could impact cash flow. Franchisees should inquire about 360 Painting's credit policies, collection procedures, and the average time it takes to collect receivables.
It's important to note that accounts receivable is a snapshot in time and can fluctuate. However, monitoring the trend in accounts receivable is crucial for assessing the financial health and operational efficiency of 360 Painting. A consistent increase in accounts receivable without a corresponding increase in revenue could signal potential problems with payment collection or customer satisfaction.