What was the reported total of Christian Brothers Automotive's accrued expenses in 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Cash Flows From Operating Activities | ||
| Net income | $ 32,039,351 | $ 38,146,383 |
| Adjustments to reconcile net income to net cash | ||
| from operating activities: | ||
| Depreciation and amortization expense | 2,502,750 | 1,674,739 |
| Gains on sale of leased properties | (3,613,496) | (13,994,953) |
| Gain on sale-leaseback transactions | (2,044,374) | (920,683) |
| Amortization of loan fees | 45,635 | 239,020 |
| Operating lease expense | 36,740,437 | 28,732,743 |
| Compensation expense from release of ESOP shares | 6,894,587 | 11,969,344 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (100,924) | (7,989,037) |
| Prepaid expenses and other assets | (4,617,833) | 3,469,575 |
| Rent receivable | (2,225,821) | (722,726) |
| Accounts payable | 742,424 | (3,069,257) |
| Accrued expenses | 1,584,770 | 1,455,317 |
| State and property taxes payable | (92,413) | 578,571 |
| Contract liabilities | 2,154,039 | 2,712,794 |
| Other current liabilities | 86,312 | 1,207,083 |
| Operating lease liability | ||
| (34,998,481) | (28,350,115) | |
| Net cash provided operating activities | 35,096,963 | 35,138,798 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the company's accrued expenses in 2023 totaled $1,584,770. This figure is part of the consolidated financial statements, which have been audited by an independent auditor. The accrued expenses are a component of the changes in operating assets and liabilities that affect the cash flows from operating activities.
Accrued expenses typically represent expenses that have been incurred but not yet paid. For a Christian Brothers Automotive franchisee, understanding the franchisor's accrued expenses can provide insight into the company's financial management and potential future obligations. It is important to note that this figure is part of a larger financial picture, and prospective franchisees should review the entire financial statement to gain a comprehensive understanding of the company's financial health.
Reviewing the changes in operating assets and liabilities, including accrued expenses, helps to understand the overall cash flow management of Christian Brothers Automotive. Significant changes in these figures from year to year could indicate shifts in the company's operational practices or financial strategies. Therefore, prospective franchisees should analyze these trends and seek clarification from the franchisor regarding any substantial fluctuations.