What was the reported amount of prepaid expenses for Apricot Lane in 2024?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ | 24,563 | $ | 90,000 | $ 361,555 | $ | 476,118 |
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 214,496 | $ | 4,020 |
| Adjustments to reconcile net income to net | ||||
| cash provided by operating activities: | ||||
| Depreciation and amortization | 51,794 | 33,509 | ||
| Gain on disposal of fixed assets | - | 510 | ||
| Realized (gain) loss on investment securities | (1,456) | (9,943) | ||
| (Increase) decrease in: | ||||
| Royalty and advertising fees receivable | 8,691 | 393,580 | ||
| Reimbursable franchise costs and other receivable | 5,941 | (4 |
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the reported amount of prepaid expenses for 2024 was $2,145. This figure is part of the cash flow statement, specifically within the adjustments to reconcile net income to net cash provided by operating activities.
Prepaid expenses typically represent payments made in advance for goods or services that will be received in the future, such as insurance premiums or rent. The change in prepaid expenses from year to year can impact the overall cash flow from operating activities. In Apricot Lane's case, the prepaid expenses decreased from $8,261 in 2023 to $2,145 in 2024.
For a prospective Apricot Lane franchisee, understanding these cash flow dynamics is crucial. Monitoring changes in prepaid expenses can offer insights into how the company manages its short-term obligations and resources. It's also important to compare these figures with previous years and industry benchmarks to assess the financial health and stability of the franchise system.