What was the change in accounts receivable for City Publications in 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. The Company had no cash equivalents as of December 31, 2024, and 2023.
NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounts Receivable
The timing of revenue recognition may be different from the timing of invoicing to customers. The Company records an accounts receivable when revenue is recognized prior to invoicing, or unearned revenue when revenue is recognized subsequent to invoicing. Man
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the timing of revenue recognition may differ from customer invoicing. City Publications records accounts receivable when revenue is recognized before invoicing. Conversely, unearned revenue is recorded when revenue is recognized after invoicing.
The FDD states that for the years ending December 31, 2024 and 2023, City Publications did not have any allowance for doubtful accounts. The bad debt expense was $0 for the year ending December 31, 2023. The FDD does not provide the exact accounts receivable figures for 2023, so it is not possible to calculate the change in accounts receivable for that year based on the provided information.
A prospective franchisee should ask City Publications for the specific accounts receivable amounts for 2022 and 2023 to determine the change in accounts receivable during that period. This information would help a franchisee understand the company's revenue recognition practices and the management of its accounts receivable.