What was the increase (decrease) in accounts payable for Cr3 American Exteriors in 2024?
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' 2025 Franchise Disclosure Document, the company experienced an increase in accounts payable in 2024. Accounts payable represents the short-term debts Cr3 American Exteriors owes to its suppliers and other creditors. An increase in this liability typically indicates that the company is purchasing more goods or services on credit.
Specifically, the FDD states that the increase in accounts payable for Cr3 American Exteriors was $32,746 in 2024, compared to an increase of $1,965 in 2023. This represents a significant increase in accounts payable from 2023 to 2024.
For a prospective franchisee, this information provides insight into the financial management and operational activities of Cr3 American Exteriors. A rising accounts payable balance could suggest business growth, but it also warrants further investigation to ensure the company is managing its short-term liabilities effectively. It would be prudent for a potential franchisee to discuss these figures with Cr3 American Exteriors to understand the reasons behind the increase and assess the company's overall financial health.