What was the (increase) decrease in accounts receivable 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 |
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 a decrease in accounts receivable in 2024. The decrease amounted to $283,085, compared to a decrease of $29,624 in 2023. This indicates a significantly larger reduction in accounts receivable in 2024 than in the previous year.
For a prospective franchisee, this information is relevant as it reflects the company's financial performance and how it manages its receivables. A large decrease in accounts receivable could suggest more efficient collection practices or changes in sales and payment terms. However, it is important to consider this figure in the context of overall revenue and other financial metrics to understand the underlying reasons for the change.
It is also worth noting that accounts receivable are amounts due to the company based on executed franchise agreements for franchise sales, royalty fees, and other revenues. The FDD states that at the end of 2024, Cr3 American Exteriors had accounts receivables of $312,709, and all accounts are deemed collectible. This provides additional insight into the overall health and management of the company's receivables.