What was the change in accounts payable-trade for All Team in 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 667,144 | $ | 787,144 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ (43,528) | $ 201,944 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Allowance for credit losses | 6,000 | 5,501 | |
| Changes in account balances: | |||
| Accounts receivable - trade | 479,748 | 1,387,458 | |
| Prepaid expenses | (61,295) | (16,270) | |
| Advances | (434,801) | (605,008) | |
| Due from IRS | 49,780 | (49,780) | |
| Accounts payable-trade | (882) | 3,528 | |
| Accrued expenses | (107,077) | (45,671) | |
| Other funding liabiliti |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the accounts payable-trade decreased by $4,410 in 2024. The balance went from $3,528 in 2023 to $(882) in 2024. This is reflected in the cash flow statement under 'Changes in account balances'.
Accounts payable represents the short-term liabilities All Team has to its suppliers or vendors for goods and services received but not yet paid for. A decrease in accounts payable could suggest that All Team paid off more of its outstanding bills in 2024 compared to 2023. This could be a result of improved cash flow management or a change in payment terms with suppliers.
However, the balance is negative in 2024, which is unusual for accounts payable. It may indicate an overpayment or credit balance with suppliers. A prospective franchisee should seek clarification from All Team regarding the reasons behind this negative balance to fully understand the company's financial health and vendor relationships.