table_specific

What was the reported amount for 'Accounts payable and accrued expenses' as an adjustment for Aw in 2022?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

| | Members' Equity (Deficit) - Ending | $ 617 | $ 11,732 | | |

STATEMENTS OF CASH FLOWS RAYYAN PIZZA FRANCHISE LLC

YEARS ENDING DECEMBER 31
Cash Flows from Operating Activities 2023 2022
Net Income $ 136,397 $ 168,681
Adjustments to reconcile net income to net cash
provided by operating activities:
Changes in assets and liabilities
Due from franchisee (6,611) 1,294
Due from related parties
Accounts payable and accrued expenses (4,834) (634)
Contract Liability (8,250) 116,702 (8,250) 161,091
Cash Flow from Financing Activities
Loan from SBA 1,954
Loan from WinTrust 25,624
Payments to WinTrust (15,551)
Cash Flow from Investing Activities
Members' (distributions) (147,512) (146,636)

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the adjustment to reconcile net income to net cash provided by operating activities related to 'Accounts payable and accrued expenses' was reported as ($634) for the year 2022. This indicates a decrease in accounts payable and accrued expenses during that year.

For a prospective Aw franchisee, this figure provides insight into the company's management of its short-term liabilities. A negative adjustment suggests that Aw paid off more of its outstanding payables than it accrued during 2022. This could be a sign of efficient financial management, but it's important to consider this figure in the context of Aw's overall financial performance and industry benchmarks.

It is important to note that this is just one line item in the financial statements and should be analyzed in conjunction with other financial data to gain a comprehensive understanding of Aw's financial health. A potential franchisee should also compare these figures with previous years and industry averages to identify any trends or anomalies. Further investigation into the specific components of 'accounts payable and accrued expenses' may also be beneficial to understand the nature of these liabilities.

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.