What was the change in accounts receivable for City Publications in 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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 when customers are invoiced. City Publications records accounts receivable when revenue is recognized before invoicing, and unearned revenue when revenue is recognized after invoicing. The company assesses the collectibility of customer receivables based on their financial condition, credit history, and current economic conditions. Accounts receivable are written off if deemed uncollectible, and any subsequent recoveries are recorded as income.
The FDD states that City Publications did not have any allowance for doubtful accounts as of December 31, 2024, and 2023. The bad debt expense was $312 for the year ended December 31, 2024, and $0 for the year ended December 31, 2023.
While the FDD provides the bad debt expense for 2023 and 2024, it does not provide the total accounts receivable for either year. Without the total accounts receivable for each year, the change in accounts receivable from 2023 to 2024 cannot be calculated. A prospective franchisee should ask City Publications for the full balance sheets to determine the actual accounts receivable amounts and assess the company's financial health.