What was the change in accounts receivable 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 |
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 accounts receivable in 2024 was a decrease of $22,400. The document provides a table outlining cash flows from operating activities, which includes this figure. In 2023 and 2022, the change in accounts receivable was $0.
This decrease in accounts receivable for Antioch Pizza Shop suggests that the company collected more money from its receivables than it generated in new receivables during 2024. Accounts receivable are amounts due to the company for goods or services already provided but not yet paid for. A negative change indicates that the company was efficient in collecting outstanding payments, or that it reduced the amount of credit it extended to customers.
For a prospective franchisee, this information is useful in understanding the financial management and cash flow dynamics of Antioch Pizza Shop. While a decrease in accounts receivable can be a positive sign of efficient collections, it's important to consider the broader context. A franchisee should investigate whether this change is a consistent trend and how it impacts the overall financial health of the franchise. They should also inquire about the company's credit policies and collection practices to understand how they might affect their own operations.