What was the change in accounts payable and accrued expenses for Crave Cookies in 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
of Cash Flows
Year Ended December 31, 2022 and Period from February 15, 2021 (Inception) through December 31, 2021
| 2022 | 2021 | |||
|---|---|---|---|---|
| Operating Activities | 107 | 720 | ||
| Net loss | S | (84,420) | $ | (14,725) |
| Items not requiring (providing) cash | 100 | |||
| Depreciation | 4,584 | 400 | ||
| Non-cash operating lease expense | 8,042 | - | ||
| Changes in | ||||
| Accounts receivable | (17,607) | 50 m | ||
| Inventory | 14,319 | (21,515) | ||
| Prepaid expenses | (33,205) | |||
| Contract assets | 44,595 | (44,595) | ||
| Accounts payable and accrued expenses | 32,788 | 17,176 | ||
| Lease liability | (7,719) | 7 | ||
| Contract liabilities | - | 324,252 | 8 | 330,419 |
| Net cash provided by operating activities | 285,629 | 10 | 267,160 | |
| Investing Activities | ||||
| Purchase of property and equipment | (16,064) | (7,208) | ||
| Repayments on notes receivable - related party | 170,400 | |||
| Borrowings on notes receivable - related party | - | (114,471) | _ | (62,899) |
| Net cash provided by (used in) investing activities | _ | 39,865 | 8 | (70,107) |
| Financing Activities | ||||
| Owners distributions | _ | (178,454) | ): | (162,876) |
| Net cash used in financing activities | 3 | (178,454) | (162,876) | |
| Change in Cash | 147,040 | 34,177 | ||
| Cash, Beginning of Period | 2 | 34,177 | 70 | |
| Cash, End of Period | s | 181,217 | s | 34,177 |
| Non-cash Supplemental |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the change in accounts payable and accrued expenses in 2022 was $32,788, compared to $17,176 in 2021. This represents the net change in short-term obligations of Crave Cookies to its suppliers and other creditors.
For a prospective franchisee, understanding changes in accounts payable and accrued expenses can provide insights into the company's short-term financial management. An increase in accounts payable and accrued expenses could indicate that Crave Cookies is utilizing more short-term credit from its suppliers, possibly to manage cash flow or invest in growth.
However, it is important to consider this figure in the context of overall financial performance. While an increase in accounts payable might provide short-term financial flexibility, a substantial and continuous rise without corresponding revenue growth could signal potential financial strain. Therefore, a franchisee should look at this in conjunction with other financial metrics to get a comprehensive view of Crave Cookies' financial health.
It is also worth noting that these figures are specific to Crave Cookies Franchising, LLC, and may not directly reflect the financial performance of individual franchise locations. Franchisees should focus on their own store-level financial management while keeping an eye on the franchisor's overall financial stability.