What was the total adjustments for All Team in 2023?
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 | (605,008) | (169,476) |
| Due from IRS | (49,780) | |
| Accounts payable-trade | 3,528 | - |
| Accrued expenses | (45,671) | 51,228 |
| Other funding liabilities | (326,541) | 818,817 |
| Total Adjustments | 353,217 | 741,133 |
| Total Cash Provided by Operating Activities | 555,161 | 965,310 |
| 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 | 15,371,492 | 21,942,195 |
| Principal payments on credit line payable | (15,758,708) | (22,540,407) |
| Principal payment on related party note | (30,000) | - |
| Stockholder distributions | (16,373) | (8,392) |
| Total Cash Used in Financing Activities | (433,589) | (606,604) |
| NET INCREASE IN CASH | 121,572 | 358,706 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the total adjustments to reconcile net income to net cash provided by operating activities in 2023 were $353,217. This figure is part of the broader cash flow statement, which outlines the movement of cash both into and out of the company during that year. These adjustments are non-cash items that are added back to net income to determine the cash generated from operations.
Specifically, these adjustments include items such as allowance for credit losses, changes in account balances like accounts receivable, prepaid expenses, advances, due from IRS, accounts payable, accrued expenses, and other funding liabilities. For instance, the allowance for credit losses was $5,501 in 2023, while changes in accounts receivable amounted to $1,387,458. These individual adjustments are summed to arrive at the total adjustment figure.
For a prospective All Team franchisee, understanding these adjustments is crucial because they provide a clearer picture of the company's actual cash flow. Net income alone can be misleading due to the inclusion of non-cash items. By examining the cash flow statement and the total adjustments, a franchisee can better assess the financial health and stability of All Team. This information is valuable for making informed decisions about investing in the franchise.