What was the net change in accounts receivable for Caring Transitions in the earliest year presented in this table?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Adjustment to reconcile net income to net cash | |||
|---|---|---|---|
| provided by operating activities: | |||
| Depreciation | 114,120 | 109,265 | 78,898 |
| Non-cash lease expense | 5,721 | (944) | 1,350 |
| Net change in assets and liabilities: | |||
| Accounts receivable | (173,605) | (143,068) | 4,928 |
| Other receivable | - | 6,463 | (6,463) |
| Deposit - payroll | - | - | 30,396 |
| Franchise contract asset | (85,147) | (68,345) | (25,712) |
| Accounts payable | (7,503) | 29,975 | 54,536 |
| Unearned revenue | 354,190 | (199,510) | 279,820 |
| Franchise contract liability | 336,556 | 244,898 | 144,805 |
| Accrued expenses | (38,412) | (3,203) | 139,062 |
| Net cash provided by operating activities | 3,226,193 | 2,304,605 | 1,719,143 |
| Cash flows from investing activities | |||
| Property and equipment purchased | (294,719) | (300,360) | (401,836) |
| Net cash used by investing activities | (294,719) | (300,360) | (401,836) |
| Cash flows from financing activities | |||
| Repayment of notes payable | (32,159) | (31,209) | (30,282) |
| Distributions | (1,705,000) | (1,947,499) | (1,092,501) |
| Net cash used by financing activities | (1,737,159) | (1,978,708) | (1,122,783) |
| Change in cash and restricted cash | 1,194,315 | 25,537 | 194,524 |
| Cash and restricted cash at beginning of year | 1,120,470 | 1,094,933 | 900,409 |
| Cash and restricted cash at end of year | $ 2,314,785 | 1,120,470 | 1,094,933 |
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the net change in accounts receivable in 2022 was $4,928. This figure represents the net increase in accounts receivable for Caring Transitions during that year.
Accounts receivable represents the money owed to Caring Transitions by its customers for services rendered but not yet paid. A positive change, like the $4,928 in 2022, indicates that Caring Transitions collected less cash from its customers than the value of the new services it provided on credit during that year.
For a prospective franchisee, understanding the changes in accounts receivable can be important for managing their own cash flow. While this table reflects Caring Transitions' overall financial performance, franchisees should inquire about typical payment cycles and collection practices to effectively manage their working capital.