What was the change in accounts payable 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 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.