What was the change in prepaid 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the prepaid expenses in 2022 were $35. Prepaid expenses represent payments made in advance for goods or services that will be received in the future. This is a snapshot of All Team's financial position at the end of 2022 concerning these specific advanced payments.
In 2023, the prepaid expenses changed to ($16,270). This means that from 2022 to 2023, All Team either utilized previously prepaid services, received refunds, or adjusted their accounting practices related to prepaid expenses. The negative value indicates a reduction in the prepaid expenses account.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and operational efficiency of All Team. Prepaid expenses can impact cash flow and profitability, so it's important to analyze these trends over multiple years to gain a comprehensive understanding. It would be prudent for a potential franchisee to inquire about the nature of these prepaid expenses and the reasons for the significant change from 2022 to 2023 to better understand the underlying business operations.