What was the change in accounts receivable for Bath Tune Up as of December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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: | ||
| Accounts receivable (254,306) (272,177) | ||
| Notes receivable (224,976) (460,630) | ||
| Rebates receivable 73,413 129,675 | ||
| Prepaid expenses 5,025 109,994 | ||
| Other current assets 11,379 10,096 | ||
| Other assets (4,000) — | ||
| Increase (decrease) in liabilities: | ||
| Accounts payable 312,705 (155,708) | ||
| Accrued liabilities (39,319) 33,690 | ||
| Operating lease liability (57,206) (59,809) | ||
| Advertising advances and deposits (146,679) (196,847) | ||
| Deferred revenue 27,529 (513,538) | ||
| Net cash provided by operating activities 2,535,078 1,787,454 | ||
| Cash flows from investing activities: | ||
| Purchase of property and equipment (174,417) (214,252) | ||
| Net cash used in investing activities (174,417) (214,252) | ||
| Cash flows from financing activities: | ||
| Advances to Parent (5,616,409) (5,067,710) | ||
| Allocations from Parent 3,716,061 3,671,090 | ||
| Net cash used in financing activities (1,900,348) (1,396,620) | ||
| Net increase in cash 460,313 176,582 | ||
| Cash at beginning of period 1,838,918 1,662,336 | ||
| Cash at end of period $ 2,299,231 $ 1,838,918 | ||
| Supplemental cash flow information: | ||
| Accrued capital expenditures $ 1,216 $ — | ||
| Transfer of property and equipment from Parent 135,536 — |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the decrease (increase) in accounts receivable as of December 31, 2023, was an increase of $272,177. This figure is part of the cash flow statement, detailing changes in assets and liabilities.
This increase in accounts receivable for Bath Tune Up suggests that the company collected less cash from its customers or franchisees during 2023 compared to the previous year. This could be due to various factors, such as extended payment terms offered to franchisees, a slowdown in payment processing, or an increase in outstanding invoices at the end of the year.
For a prospective Bath Tune Up franchisee, this information is useful for understanding the company's cash management and the potential for fluctuations in receivable collections. It's important to investigate the reasons behind this increase and assess whether it reflects a broader trend or a one-time event. Understanding the dynamics of accounts receivable can help franchisees better manage their own cash flow and financial planning.