What are some examples of items included in 'accounts payable-trade' for All Team?
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 liabilities | 213,416 | (326,541) | |
| Total Adjustments | 144,889 | 353,217 | |
| Total Cash Provided by Operating Activities | 101,361 | 555,161 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Payments on note receivable - franchises | - | - | |
| Total Cash Provided by Investing Activities | - | - | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from credit line payable | 9,972,228 | 15,371,492 | |
| Principal payments on credit line payable | (10,433,329) | (15,758,708) | |
| Principal payment on related party note | (24,606) | (30,000) | |
| Stockholder distributions | (2,261) | (16,373) | |
| Total Cash Used in Financing Activities | (487,968) | (433,589) | |
| NET IN |
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' line item is present in the cash flow statements. For 2024, the value was ($882), and for 2023, it was $3,528.
Accounts payable generally represent short-term obligations a business owes to its suppliers or vendors for goods and services received but not yet paid for. In the context of All Team, these could include amounts owed to suppliers of equipment, marketing materials, or other services necessary for the franchise's operation. The negative value in 2024 suggests that All Team paid off more of these short-term obligations than it incurred during that year, while the positive value in 2023 indicates the opposite.
Prospective franchisees should understand how All Team manages its accounts payable, as this can impact the company's overall financial health and its relationships with suppliers. A consistent and timely payment history is crucial for maintaining good relationships with vendors and securing favorable terms. While the FDD provides these figures, it does not detail the specific types of expenses included within accounts payable. Therefore, it would be prudent for potential franchisees to inquire with All Team about the typical nature of these trade payables to gain a clearer picture of the company's operational expenses.