What was the amount of Prepaid Expenses for All County in 2022?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
| nd of Year | 195,251 | (110,516) | 45,901 |
|---|---|---|---|
| TOTAL STOCKHOLDER'S EQUITY (DEFICIT), END OF YEAR | $ 337,459 | $ 31,692 | $ 188,109 |
See accompanying Auditor's Report and Notes to the Financial Statements
Statements of Cash Flows For Years Ended December 31, 2024, 2023, & 2022
| Year 2024 | Year 2023 | Year 2022 | ||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net Income (Loss) | $ 448,390 | $ 271,100 | $ 216,956 | |
| Adjustments to reconcile Net Income (Loss) | to net cash provided (used) by operating activities: | |||
| Depreciation | 21,008 | 1,399 | - | |
| (Increase) decrease in: | ||||
| Accounts & Commisisons Receivable | 48, |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Prepaid Expenses for the year 2022 was $15,126. This figure is part of the cash flow statement, detailing changes in assets and liabilities that impact All County's cash position. Prepaid expenses typically represent payments made in advance for goods or services that will be received in the future, such as insurance premiums or rent. As these prepaid items are used over time, their value is recognized as an expense on the income statement.
For a prospective All County franchisee, understanding prepaid expenses is crucial for managing their own business finances. It highlights the importance of planning for future obligations and how these advance payments affect the business's cash flow. Monitoring these expenses can help franchisees better forecast their financial needs and ensure they have sufficient funds to cover upcoming costs.
It's also worth noting that the absence of depreciation figures for 2022 in the provided cash flow statement, while prepaid expenses are listed, suggests a different method of accounting or reporting for depreciation during that year. This could be due to changes in accounting practices or the nature of assets held by All County during that period. Franchisees should seek clarification from All County regarding any significant changes in accounting practices that may affect their financial reporting and business operations.