What was the total amount of accrued expenses 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, |
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 2023 were a negative amount, specifically ($45,671). This figure is found within the cash flow statement under 'Cash Flows From Operating Activities' as a change in account balances. Accrued expenses represent expenses that All Team has incurred but not yet paid.
The negative value for accrued expenses in 2023 suggests that All Team paid off more in accrued expenses than it incurred during that year. This could be due to various factors, such as paying off outstanding bills or liabilities from previous periods. It's important to note that this figure is part of a larger financial statement and should be analyzed in conjunction with other line items to gain a comprehensive understanding of All Team's financial health.
Prospective franchisees should understand how accrued expenses are managed, as this can impact the overall profitability and cash flow of their own franchise operations. While this figure reflects All Team's corporate financials, franchisees will also have their own accrued expenses to manage, such as rent, utilities, and salaries. Understanding the timing of expense recognition and payment is crucial for effective financial management.