What was the increase or decrease in accounts payable and accrued expenses for Crawlspace Medic in 2023?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
24 | $ | 216,112 | $ | 460,495 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2023 | For the Years Ended December 31, 2022 | 2021 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ 1,149,783 | $ 808,447 | $ 954,060 |
| Change in noncash rental assets and liability | (1,167) | - | - |
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | (53,100) | 280,000 | (275,000) |
| Decrease in royalty fees receivable | - | 9,972 | 3,918 |
| (Increase) decrease in due from related parties | - | 9,599 | (9,599) |
| (Increase) decrease in prepaid expense | (21,437) | 6,918 | (12,168) |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | 4,691 | (11,088) | 22,144 |
| Increase (decrease) in due to related party | 15,096 | (1,444) | (20,676) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,093,866 | 1,102,404 | 662,679 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | - | (21,460) |
| Member's withdrawals | (1,029,271) | (1,052,830) | (641,150) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,029,271) | (1,052,830) | (662,610) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 64,595 | 49,574 | 69 |
| Cash and cash equivalents at beginning of year | 22 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the company's accounts payable and accrued expenses increased by $4,691 in 2023. This figure is derived from the cash flow statement, which tracks changes in operating assets and liabilities. This increase in accounts payable and accrued expenses suggests that Crawlspace Medic had a greater amount of short-term obligations at the end of 2023 compared to the end of 2022.
For a prospective franchisee, this information provides insight into Crawlspace Medic's financial management and short-term liabilities. An increase in accounts payable and accrued expenses could indicate that the company is effectively managing its cash flow by delaying payments to suppliers and other creditors. However, it could also signal potential financial strain if the company is struggling to meet its obligations.
It's important to note that this is just one data point and should be considered in the context of the company's overall financial performance. A prospective franchisee should review the complete financial statements and consult with a financial advisor to fully understand the implications of this increase in accounts payable and accrued expenses for Crawlspace Medic.