What was the change in accounts receivable - 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) | |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the accounts receivable-trade decreased from 2023 to 2024. In 2023, the accounts receivable-trade was $1,387,458, while in 2024, it was $479,748. This represents a decrease of $907,710 in accounts receivable-trade for All Team.
This significant decrease in accounts receivable could indicate several factors relevant to a prospective All Team franchisee. It may suggest improved efficiency in collecting payments, a change in credit policies, or potentially a decrease in sales on credit. Understanding the reasons behind this change is crucial for assessing the financial health and operational strategies of All Team.
A potential franchisee should investigate the reasons for this substantial change by asking All Team for detailed explanations. Understanding whether this decrease is due to positive changes like better collection practices or negative ones like decreased credit sales is essential for making an informed investment decision. Furthermore, comparing these figures with industry benchmarks can provide additional context.