What was the amount of Prepaid Expenses for Craters & Freighters as of December 31, 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 5,413,239 | $ 5,414,139 |
Statements of Cash Flows
| Years Ended December 31, | 2023 | 2022 |
|---|---|---|
| Change in Cash and Cash Equivalents: | ||
| Cash Flows from Operating Activities: | ||
| Net Income | $ 2,633,230 $ | 2,437,747 |
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
| From Operating Income: | ||
| Amortization Expense | 101,989 | 99,763 |
| Depreciation Expense | 26,134 | 21,995 |
| Gain on Sale of Fixed Assets | (15,729) | - |
| Gain on Sale of Marketable Securities | (841) | (3,643) |
| Bad Debt Expense | 10,000 | 24,928 |
| Non-Cash Lease Expense | 1,865 | 83,132 |
| Unrealized Holding (Gain) Loss on Marketable Securities | (97,174) | 69,301 |
| Reinvested Dividends | (13,827) | (13,279) |
| (Increase) Decrease in Assets: | ||
| Accounts |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's prepaid expenses and deposits decreased by $166,615 during the year ending December 31, 2023. This figure is part of the adjustments made to reconcile net income to net cash and cash equivalents from operating income.
For a prospective franchisee, prepaid expenses typically include items like insurance premiums, rent, or advertising costs that have been paid in advance. The decrease of $166,615 in prepaid expenses and deposits for Craters & Freighters suggests that the company either reduced its advance payments for these items or utilized previously prepaid services during 2023.
Understanding the nature of these prepaid expenses can offer insights into Craters & Freighters' operational and financial management practices. Franchisees may want to inquire about the specific types of prepaid expenses and the company's policies regarding these payments to better understand the cash flow dynamics within the Craters & Freighters system.