What was the increase (decrease) in accounts payable and accrued expenses for Crawlspace Medic in 2022?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
,112 | $ | 460,495 | $ 147,585 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | $ 808,447 | $ 954,060 | $ 218,669 |
| Net income | |||
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | 280,000 | (275,000) | (5,000) |
| (Increase) decrease in royalty fees receivable | 9,972 | 3,918 | (9,590) |
| (Increase) decrease in due from related parties | 9,599 | (9,599) | - |
| (Increase) decrease in prepaid expense | 6,918 | (12,168) | - |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | (11,088) | 22,144 | 630 |
| Decrease in due to related party | (1,444) | (20,676) | - |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,102,404 | 662,679 | 204,709 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | (21,460) | (53,629) |
| Members' withdrawals | (1,052,830) | (641,150) | (22,222) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,052,830) | (662,610) | (75,851) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 49,574 | 69 | 128,858 |
| Cash and cash equivalents at beginning o |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, in 2022, there was a decrease in accounts payable and accrued expenses. The FDD indicates that the increase (decrease) in accounts payable and accrued expenses was ($11,088) in 2022. This means that Crawlspace Medic had a net decrease of $11,088 in these liabilities during that year.
Accounts payable typically represents short-term obligations a business owes to its suppliers or vendors. Accrued expenses are expenses that have been incurred but not yet paid. A decrease in these accounts could suggest that Crawlspace Medic paid off more of its outstanding short-term debts and accrued expenses than it incurred during 2022.
For a prospective franchisee, this information provides insight into Crawlspace Medic's financial management and its ability to manage its short-term liabilities. While a decrease in accounts payable and accrued expenses can be a positive sign, it's important to consider the context and reasons behind the change. A potential franchisee may want to inquire about the specific factors that contributed to this decrease to gain a better understanding of the company's financial health and practices.