What was the change in accounts receivable for Chocolate Bash in 2022?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
D DECEMBER 31, 2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | $ 15,483 | $ 28,687 | $ 38,808 |
| Non-Cash Adjustments | |||
| Changes in Deferred Revenue | 24,896 | (23,021) | 22,000 |
| Changes in Due From Affiliate | (35,956) | - | 1,250 |
| Changes in Accounts Receivable | 19,041 | (21,194) | - |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | 23,464 | (15,528) | 62,058 |
| INVESTING ACTIVITIES | |||
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | - | - | - |
| FINANCING ACTIVITIES | |||
| Owner's Contribution (net) | (61,122) | (30,100) | 17,940 |
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (61,122) | (30,100) | 17,940 |
| NET INCREASE (DECREASE) IN CASH | (37,658) | (45,628) | 79,998 |
| CASH AT BEGINNING OF PERIOD | 59,295 | 104,922 | 24,924 |
| CASH AT |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the change in accounts receivable for the company in 2022 was a decrease of $21,194. This figure is derived from the Statement of Cash Flows, which tracks the movement of money both into and out of the company. Accounts receivable represents money owed to Chocolate Bash by its customers (franchisees). A negative change indicates that the company collected more in outstanding receivables than it invoiced during that year.
For a prospective franchisee, this indicates how Chocolate Bash manages its finances and collects payments. A decrease in accounts receivable could mean Chocolate Bash is effectively collecting debts, which is a positive sign. However, it could also mean that sales decreased, leading to fewer outstanding invoices.
It is important to note that this figure is just one data point and should be considered alongside other financial metrics. A potential franchisee should look at the overall trend in accounts receivable over several years, as well as the company's policies for managing and collecting receivables, to get a more complete picture. Understanding these trends can help a franchisee assess the financial health and stability of Chocolate Bash.