What was the change in accounts payable and accrued expenses for Crave Cookies in 2023?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
5)_ | | Owner distributions | (299,129) | | Net loss | (444,708) | | Balance, December 31, 2023 | $ (1.184,312) |
| 2023 | 2022 | |||
|---|---|---|---|---|
| Operating Activities | ||||
| Net loss | $ | (444,708) | S | (84,420) |
| Items not requiring (providing) cash | 31 LMLN | |||
| Depreciation | 7,844 | 4,584 | ||
| Non-cash operating lease expense | 9,987 | 8,042 | ||
| Provision for credit losses on accounts receivable | 5,000 | |||
| Changes in | ||||
| Accounts receivable | (87,392) | (17,607) | ||
| Inventory | (6,721) | 14,319 | ||
| Prepaid expenses | 31,830 | (33,205) | ||
| Contract assets | . 30 | 44,595 | ||
| Accounts payable and accrued expenses | 118,529 | 32,788 | ||
| Lease liability | (10,310) | (7,719) | ||
| Contract liabilities | - | 624,470 | _ | 324,252 |
| Net cash provided by operating activities | - | 248,529 | _ | 285,629 |
| Investing Activities | ||||
| Purchase of property and equipment | (16,931) | (16,064) | ||
| Repayments on related-party note | 113,332 | 170,400 | ||
| Borrowings on related-party note | _ | (47,416) | (114,471) | |
| Net cash provided by investing activities | 48,985 | 39,865 | ||
| Financing Activity | ||||
| Owners distributions | (299,129) | (178,454) | ||
| Net cash used in financing activity | (2) | (299,129) | (178,454) | |
| Change in Cash | (1,615) | 147,040 | ||
| Cash, Beginning of Year | _ | 181,217 | 34,177 | |
| Cash, End of Year | $ | 179,602 | $ | 181,217 |
| Non-cash Supplemental Cash Flow Information | ||||
| Accrued expense converted into a | ||||
| note receivable - related party | $ | - E | S | 9,026 |
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 2023 was an increase of $118,529 compared to 2022. In 2023, the accounts payable and accrued expenses totaled $118,529, while in 2022, the amount was $32,788.
Accounts payable and accrued expenses represent short-term liabilities that Crave Cookies has to its suppliers and other creditors. This increase could be due to a variety of factors, such as increased purchasing of supplies, delayed payments to vendors, or changes in accounting practices.
For a prospective franchisee, understanding these changes in liabilities can provide insights into the financial management and operational efficiency of Crave Cookies. It is important to analyze these figures in conjunction with other financial data to get a comprehensive view of the company's financial health and stability. A significant increase in accounts payable might indicate potential cash flow challenges or strategic decisions regarding vendor relationships.