What was the amount of the change in inventory for Antioch Pizza Shop in 2024?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
330 | 218,330 | | Balances at December 31, 2023 | 1,000 | $ | 10 | $ | 6,810 | $ | 245,516 | $ 252,336 |
STATEMENTS OF CASH FLOWS
For the years ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Cash flows from operating activities | ||||||
| Net income | $ | 218,330 | $ | 35,383 | $ | 259,523 |
| Adjustments to reconcile net income to | ||||||
| net cash provided |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the change in inventory in 2024 was a decrease of $7,650. This figure is derived from the cash flow statement, which tracks changes in operating assets and liabilities.
This decrease in inventory suggests that Antioch Pizza Shop used more inventory than it purchased during 2024. For a prospective franchisee, this could indicate efficient inventory management or potentially insufficient stock levels, depending on the context. It's important to consider this figure in relation to sales and cost of goods sold to understand the overall inventory turnover and efficiency.
It is also important to note that the balance sheet lists the inventory as $7,650 at the end of 2024. The cash flow statement shows the change in inventory, not the total inventory on hand. A prospective franchisee should analyze these figures in conjunction with other financial data to assess the financial health and operational efficiency of Antioch Pizza Shop.