What was the change in accounts receivable for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| - | | - | - | | 39,507 | 39,507 | | Distributions | | | | | | | (16,582,517) | | | (16,582,517) | | Balance December 31, 2024 | $ | 2,100 | $ | 210,000 | $ | 366,366 | $ 13,031,512 | $ | 54,347 | $ 13,664,325 |
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Operating Activities | |||
| Net income | $ 19,161,078 | $ 14,196,288 | $ 10,941,550 |
| Items not requiring (providing) cash | |||
| Depreciation | 999,912 | 1,063,068 | 1,095,919 |
| Bad debt expense | 160,526 | 54,103 | 13,153 |
| Noncash operating lease cost | 94,315 | 91,359 | 88,451 |
| Loss on abandonment of software subscription | 1,454,554 | - | - |
| Effec |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the change in accounts receivable for the year 2022 was a decrease of $691,842. This figure is derived from the consolidated statements of cash flows, reflecting the net effect of sales on credit and collections during that period. A negative change indicates that City Wide collected more on its outstanding invoices than it issued in new credit during the year.
For a prospective City Wide franchisee, understanding the changes in accounts receivable provides insight into the company's cash flow management and the efficiency of its collection processes. A significant decrease in accounts receivable, as seen in 2022, could suggest effective collection strategies or a conservative approach to extending credit to customers. However, it is important to consider this figure in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.
Franchisees should consider this information in the context of their own business planning. While City Wide's consolidated financials provide a broad overview, individual franchisee experiences may vary. It is advisable to inquire about the typical payment terms offered to customers and the support provided by City Wide in managing accounts receivable to ensure a stable cash flow for their franchise.