table_specific

What was the change in accounts payable for Antioch Pizza Shop in 2024?

Antioch_Pizza_Shop Franchise · 2025 FDD

Answer 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 by operating activities:
Changes in operating assets and liabilities:
Accounts receivable (22,400) - -
Inventory (7,650) - -
Deferred commissions 8,008 (16,973) -
Related party payable - - (44,521)
Accounts payable (2,199) 6,383 (10,856)
Deferred revenue - 10,000 25,000
Net cash provided by operating activities 194,089 34,793 229,146
Cash flows from financing activities
Stockholder dividends (15,510) (85,889) (430,179)
Net cash used in financing activities (15,510) (85,889) (430,179)
Net change in cash and cash equivalents 178,579 (51,096) (201,033)
Cash and cash equivalents at beginning of period

Source: Item 21 — Financial Statements (FDD page 56)

What This Means (2025 FDD)

According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the accounts payable decreased by $2,199 in 2024. This figure is derived from the cash flow statement, which tracks changes in operating assets and liabilities. In 2023, accounts payable increased by $6,383, and in 2022, they decreased by $10,856.

Accounts payable represent the short-term debts Antioch Pizza Shop owes to its suppliers and other creditors. A decrease in accounts payable suggests that the company paid off more of its short-term obligations than it incurred during the year. This could be a sign of improved financial management or a change in payment terms with suppliers. Conversely, an increase in accounts payable might indicate that the company is taking longer to pay its bills or is relying more on supplier credit to finance its operations.

For a prospective franchisee, understanding these changes in accounts payable can provide insights into Antioch Pizza Shop's working capital management and its relationships with suppliers. It's important to consider these figures in conjunction with other financial metrics to get a comprehensive view of the company's financial health. A consistent decrease in accounts payable, coupled with strong revenue growth, could be a positive indicator, while a sharp increase in accounts payable alongside declining revenues might raise concerns about the company's ability to meet its short-term obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.