What was the change in trade accounts payable and accrued expenses for Boulder Designs in 2024?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
135,967 | 183,606 | | General and administrative expenses | 1,250,875 | 1,301,065 | 1,266,488 | | | 2,192,873 | 2,251,831 | 2,055,860 | | Operating income (loss) | 136,924 | (662,471) | 108,254 | | Interest expense | (14,073) | (21,578) | (4,884) | | Other expense | (28,000) | (31,696) | (36,241) | | Net income (loss) | 94,851 | (715,745) | 67,129 | | Member's deficit, beginning of year | (3,810,894) | (2,996,967) | (2,779,329) | | Contributions from member | 87,889 | 259,214 | 403,269 | | Distributions to member | (493,883) | (357,396) | (688,036) | | Member's deficit, end of year | $ (4,122,037) | (3,810,894) | (2,996,967) |
Statements of Cash Flows
Years Ended December 31,
| _ | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 94,851 | (715,745) | 67,129 |
| Adjustments to reconcile net income (loss) to net | · | , , , | · | |
| cash from operating activities: | ||||
| Depreciation and amortization | 25,731 | 24,988 | 25,680 | |
| Provision for credit losses | 86,025 | 30,799 | 13,287 | |
| Impairment loss on acquired franchise | ||||
| agreements | 28,000 | 30,000 | 30,000 | |
| Changes in operating assets and liabilities: | ||||
| Franchise fees receivable | 70,103 | (503,303) | (11,365) | |
| Inventory | 61,051 | 27,531 | 21,766 | |
| Deferred costs | 75,212 | (15,134) | (115,101) | |
| Other receivables | (2,932) | (868) | (700) | |
| Trade accounts payable and | ||||
| accrued expenses | 6,111 | (210,366) | 298,101 | |
| Deferred franchise fees | _ | 243,044 | 1,702,881 | 84,557 |
| Net cash provided by operating activities | 687,196 | 370,783 | 413,354 | |
| Cash flows from investing activities: | ||||
| _ | 30,986 | (6,331) | ||
| Advances to (repayments from) related party | - | (20,000) | (204,500) | |
| Payments for acquired franchises Capital expenditures | (8,860) | (20,000) | (8,244) | |
| _ | (0,000) | (0,244) | ||
| Net cash provided by (used in) investing activities | (8,860) | 10,986 | (219,075) | |
| investing activities | _ | (8,800) | 10,780 | (217,075) |
| Cash flows from financing activities: | ||||
| Proceeds from iss |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the combined trade accounts payable and accrued expenses increased by $6,111 in 2024. This figure is derived from the cash flow statement, which tracks changes in operating assets and liabilities. In 2023, these accounts had decreased by $210,366.
Trade accounts payable typically represent short-term obligations to suppliers for goods and services received but not yet paid for. Accrued expenses are expenses that have been incurred but not yet paid, such as wages, utilities, or interest. Monitoring these figures can provide insights into a company's short-term financial health and its ability to manage its current liabilities.
The increase of $6,111 in 2024, compared to the decrease of $210,366 in 2023, suggests a shift in how Boulder Designs managed its short-term liabilities and payments during these periods. A prospective franchisee should investigate the reasons behind these changes to understand the company's financial management practices and potential impacts on their own franchise operations.