What was the increase (decrease) in accounts payable for Cr3 American Exteriors in 2023?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Loss | (46,591) | | Equity at December 31, 2022 | $ 4,820 | | Equity at January 1, 2023 | $ 4,820 | | Capital Contributions | 28,589 | | Net Loss | (14,538) | | Equity at December 31, 2023 | $ 18,871 | | Equity at January 1, 2024 | $ 18,871 | | Capital Contributions | 30,000 | | Net Loss | 89,667 | | Equity at December 31, 2024 | $ 138,538 |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | · | ||
| Net Income (Loss) | $ 89,667 | $ (14,538) | $ (46,591) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciation & Amortization | 87 | 87 | 29 |
| Changes in Assets and Liabilities | |||
| (Increase) Decrease in Prepaid Expenses | (1,525) | = | |
| (Increase) Decrease in Accounts Receivable | (283,085) | (29,624) | - |
| (Increase) Decrease in Other Receivables | (15,591) | (25,000) | _ |
| Increase (Decrease) in Accounts Payable | 32,746 | 1,965 | = |
| Increase (Decrease) in Payroll Liabilities | 1,628 | 1,523 | - |
| Increase (Decrease) in Deferred Revenue | 307,113 | 32,375 | - |
| Net Cash Provided by Operating Activities | 131,040 | (33,212) | (46,562) |
| Cash Flows From Investing Activities: | |||
| Due To Affiliates | (38,293) | 47,328 | _ |
| Purchase of Assets | (50,275) | 47,320 | (1,300) |
| Net Cash Provided by Investing Activities | (38,293) | 47,328 | $\frac{(1,300)}{(1,300)}$ |
| Cash Flows From Financing Activities: | W-1000-7 | ||
| Capital Contributions | 30,000 | 28,589 |
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the increase in accounts payable in 2023 was $1,965. This figure represents the change in the company's short-term liabilities to its suppliers and creditors during that year. An increase in accounts payable generally indicates that Cr3 American Exteriors was able to defer payments to its suppliers, which can free up cash flow in the short term.
For a prospective franchisee, understanding the franchisor's accounts payable trends can provide insights into their financial management practices. A consistent increase might suggest effective working capital management, while a significant decrease could indicate tighter credit terms or financial difficulties. It's important to note that accounts payable is just one aspect of a company's financial health, and should be considered alongside other financial metrics.
Franchisees should consider this information in the context of the overall financial performance of Cr3 American Exteriors. While a small increase in accounts payable might not be significant on its own, it contributes to the broader picture of how the company manages its finances and obligations. Prospective franchisees should also compare these figures with industry benchmarks to assess whether Cr3 American Exteriors's financial practices are in line with similar businesses.