What was the change in inventory for City Wide in 2024?
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 | - | - |
| Effect of foreign currency translation (gain) loss | 39,507 | (6,653) | 26,999 |
| Deferred compensation | 455,292 | 614,155 | - |
| Changes in | |||
| Accounts receivable | (838,659) | (645,018) | (691,842) |
| Deferred franchise costs and prepaid expenses | (319,698) | 46,486 | (241,676) |
| Inventory | 58,725 | (75) | (8,355) |
| Software subscription | (631,500) | (891,054) | - |
| Accounts payable | 3,969,091 | 2,603,540 | 3,211,061 |
| 920,639 | 113,353 | 363,757 | |
| Accrued expenses | (182,963) | (180,007) | (177,099) |
| Operating lease liabilities | |||
| Deferred franch |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the inventory saw an increase of $58,725 during 2024. This figure is derived from the consolidated statements of cash flows, which tracks changes in various assets and liabilities. This increase in inventory contributed positively to the net cash provided by operating activities for City Wide during that year.
Specifically, the document details that the change in inventory is part of the broader category of 'Changes in' assets and liabilities, which affects the overall cash flow from operating activities. For a prospective franchisee, understanding these changes is crucial as it reflects how City Wide manages its resources and obligations. Efficient inventory management can lead to better cash flow, which is a key indicator of financial health.
It's important to note that while the inventory increased by $58,725 in 2024, the document also shows the inventory for 2023 was reduced by $75. This indicates that inventory levels can fluctuate year to year, and it is important for franchisees to understand the factors that can impact inventory levels and how to manage them effectively. This information is part of a broader financial picture that includes net income, depreciation, changes in accounts receivable, and other factors that collectively determine City Wide's cash flow.