What was the change in accounts receivable for Brain Balance in 2022?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, 2024, 2023, and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Cash Flows from Operating Activities | ||||
| Net (loss) income | $(324,837) $ | 161,876 $ | 307,374 | |
| Adjustments to reconcile net (loss) income to net cash and | ||||
| restricted cash from operating activities: | ||||
| Depreciation and amortization | 49,819 | 29,920 | 24,806 | |
| Credit loss expense | 59,741 | 5,560 | - | |
| Changes in operating assets and liabilities that (used) | ||||
| provided cash and restricted cash: | ||||
| Accounts receivable | (126,097) | 42,623 | (75,804) | |
| Deferred franchise costs | 20,050 | 23,393 | 19,952 | |
| Prepaid expenses and other assets | (33,382) | (10,615) | 53,332 | |
| Accounts payable and accrued expenses | (66,584) | (46,246) | 81,063 | |
| Deferred revenue | 16,809 | (89,332) | (96,172) | |
| Accrued advertising expenses | (56,130) | (98,824) | 84,461 | |
| Net cash and restricted cash (used in) provided | ||||
| by operating activities | (460,611) | 18,355 | 399,012 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the change in accounts receivable in 2022 was a decrease of $75,804. This figure is part of the cash flow statement, specifically within the cash flows from operating activities section. It reflects the net effect of sales on credit and collections of accounts receivable during that year.
For a prospective Brain Balance franchisee, this indicates how much the company's accounts receivable changed during that period. A negative number suggests that Brain Balance collected less in accounts receivable than it generated in sales on credit during 2022. This could be due to various factors such as slower payments from franchisees or an increase in outstanding invoices.
Understanding these changes can help a potential franchisee assess the financial health and operational efficiency of Brain Balance. It's important to consider these figures in conjunction with other financial data to get a comprehensive view of the company's performance and to understand the potential risks and opportunities associated with investing in a Brain Balance franchise.