What was the change in accounts payable for Bath Tune Up as of December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
258 14,408,298 | | | | Operating expenses | | | | Cost of product sales 61,171 38,689 | | | | Selling and advertising 3,407,107 3,309,601 | | | | Operating and administrative 8,682,605 8,310,719 | | | | Loss on disposal of assets — 3,651 | | | | Foreign exchange loss (gain) 15,613 (9,062) | | | | Other operating expense 28,018 — | | | | Total Operating expenses 12,194,514 11,653,598 | | | | Income from operations 1,734,744 2,754,700 | | | | Other income (expense) | | | | Interest income 83,205 54,737 | | | | Other expense, net (229,065) (537,961) | | | | Total Other income (expense) (145,860) (483,224) | | | | Net income $ 1,588,884 $ 2,271,476 | | |
9 Total
Transferred Franchises
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income $ 1,588,884 $ 2,271,476 | ||
| Adjustments to reconcile Net income to Net cash provided by | ||
| operating activities | ||
| Depreciation 277,279 211,930 | ||
| Amortization of operating right-of-use lease assets 55,233 53,752 | ||
| Provision for credit losses 894,504 630,961 | ||
| Loss on disposal of assets — 3,651 | ||
| Foreign exchange (gain) loss 15,613 (9,062) | ||
| Decrease (increase) in assets: |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the company's accounts payable saw a decrease of $155,708 as of December 31, 2023. This figure is derived from the cash flow statement, which tracks changes in liabilities like accounts payable.
Accounts payable represents the short-term debts Bath Tune Up owes to its suppliers and vendors. A decrease in accounts payable suggests that the company paid off more of its outstanding bills than it incurred during the year. This could be a sign of improved financial management or a change in payment strategies.
For a prospective Bath Tune Up franchisee, understanding these changes in accounts payable can offer insights into the company's financial health and its ability to manage its short-term obligations. While a decrease can be positive, it's important to consider the context and reasons behind the change. Further investigation may be warranted to ensure this decrease aligns with sustainable business practices.