What was the (increase) decrease in other receivables 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 | 51,411 |
| Net Cash Provided by Financing Activities | 30,000 | 28,589 | 51,411 |
| Net Change in Cash | 122,747 | 42,705 | 3,549 |
| Cash - Beginning of Period | 46,254 | 3,549 - | _ |
| Cash - End of Period | $ 169,001 | $ 46,254 | $ 3,549 |
| Supplementary Disclosures Of Cash Flows | |||
| Cash Paid For Interest | $ 88 | $ - | $ - |
| Cash Paid For Income Taxes | $ - | $ - | $ - |
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIF
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the (increase) decrease in other receivables in 2023 was ($25,000). This figure represents the change in the amount of money owed to Cr3 American Exteriors by parties other than its regular customers during that year. These receivables presented on the balance sheet include amounts due from noncustomers. During the year ending December 31, 2023, the amount due in Other Receivables related to a marketing vendor has been recognized as a reduction in advertising cost during the year ending December 31, 2023.
For a prospective franchisee, this indicates a decrease in the amounts owed to Cr3 American Exteriors by non-customer entities. This could be due to various factors, such as the collection of outstanding debts or changes in the company's financial practices. It is important to note that the amount due in Other Receivables related to a marketing vendor has been recognized as a reduction in advertising cost during the year ending December 31, 2023.
Understanding the nature and collectibility of receivables is crucial for assessing the financial health of a franchise. Franchisees should inquire about the types of transactions that generate other receivables and the company's policies for managing and collecting these amounts. This information can provide insights into the company's financial management practices and potential risks associated with uncollectible debts.