What was the change in accrued expenses for All Team in 2022?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
(16,373) | | (16,373) | | Balance at December 31, 2023 | $ 1,000 | $ 119,000 | $ | 712,933 | $ | 832,933 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 2022 | ||
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $ 201,944 | $ 224,177 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Allowance for credit losses | 5,501 | 6,000 |
| Changes in account balances: | ||
| Accounts receivable - trade | 1,387,458 | 34,529 |
| Prepaid expenses | (16,270) | 35 |
| Advances | (605, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company's accrued expenses in 2022 were $51,228. In 2023, the accrued expenses were listed as ($45,671). This represents a decrease of $96,899 in accrued expenses from 2022 to 2023.
Accrued expenses typically represent liabilities that a company has incurred but has not yet paid. These can include items like salaries, rent, utilities, or taxes. The decrease in accrued expenses could indicate that All Team paid off a significant portion of its outstanding liabilities in 2023 compared to 2022.
Prospective franchisees should be aware of these figures as they provide insight into All Team's financial management and payment practices. Understanding the nature of these accrued expenses and the reasons for the decrease can offer a clearer picture of the company's financial health and stability. It would be prudent for potential franchisees to inquire about the specific types of expenses included in this category and the company's strategy for managing its liabilities.