What was the reported amount for 'Accounts payable and accrued expenses' as an adjustment for Aw in 2022?
Aw Franchise · 2025 FDDAnswer 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.