What was the total amount of prepaid 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 | (605,008) | (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 |
| CASH, BEGINNING OF YEAR | 894,307 | 535,601 |
| CASH, END OF YEAR | $ 1,015,879 | $ 894,307 |
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||
| Right-of-use asset acquired under operating lease | $ - | $ 192,816 |
For the years ended December 31, 2023 and 2022
NOTE 1 – BACKGROUND INFORMATION
The Company is engaged in franchising businesses that provide temporary employment services and management placement throughout the United States.
The Company was formed June 18, 1986 in the State of Missouri and commenced activities on July 1, 1986.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition
The Company maintains its books and prepares its financial statements on the accrual basis of accounting wherein revenue is recognized when earned and invoiced and expenses are recognized when incurred. Furthermore, initial franchise fee income is earned upon execution of the franchise agreement, which is nonrefundable. The Company receives royalties based upon a percentage of annual sales volume of its affiliates and franchisees.
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 for 2023 are detailed in the financial statements. There are two different values for prepaid expenses listed in the provided excerpts. One excerpt shows prepaid expenses as a negative value, while another shows it as a positive value.
One excerpt from the cash flow statement shows prepaid expenses as ($16,270) in 2023. This figure appears as a change in account balances related to operating activities. This means that All Team used $16,270 of its prepaid expenses during the year.
Another excerpt from the balance sheet shows prepaid expenses as $20,368 in 2023. This figure represents the total amount of prepaid expenses All Team had as an asset at the end of the year. A prospective franchisee should clarify with All Team the reason for the discrepancy between these two figures.