What were the total current liabilities for Antioch Pizza Shop in 2023?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 5,943 | $ | 8,142 | $ | 1,759 |
| Deferred revenue | 35,000 | 35,000 | 25,000 | |||
| Total current liabilities | 40,943 | 43,142 | 26,759 |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the company's total current liabilities in 2023 were $43,142. Current liabilities are obligations due within one year, reflecting the company's short-term financial obligations. These liabilities include accounts payable and deferred revenue.
Specifically, the accounts payable for Antioch Pizza Shop in 2023 amounted to $8,142, while deferred revenue was $35,000. Accounts payable typically represent short-term obligations to suppliers or vendors. Deferred revenue consists of payments received for services or goods that have not yet been delivered or rendered. In Antioch Pizza Shop's case, this deferred revenue relates to franchise fees from franchisees who have not yet begun operations.
Understanding the composition and magnitude of current liabilities is crucial for prospective franchisees. It provides insight into the company's short-term financial health and its ability to meet its immediate obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues. Therefore, reviewing these figures in the context of the company's overall financial statements is essential for making informed investment decisions.