What was the prepaid expense amount for Fast Fix Jewelry And Watch Repairs in 2024?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
| | (1,251,279) | | (344,949) | | Net income | | | | | | | 357,356 | | 357,356 | | Balance, December 31, 2024 | 978,781 | $ | 100 | $ | 906,230 | $ | (893,923) | $ | 12,407 |
| 2024 | 2023 | |||
|---|---|---|---|---|
| Operating activities | ||||
| Net income | $ | 357,356 | $ | 279,052 |
| Adjustments to reconcile net income to | ||||
| net cash provided by operating activities: | ||||
| Depreciation and amortization | 693,840 | 695,347 | ||
| Amortization of debt issuance costs | 77,040 | 77,040 | ||
| Deferred income taxes | 22,787 | 63,958 | ||
| Provision for credit losses | 46,557 | |||
| Paid-in-Kind (PIK) interest | 43,543 | 44,984 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 52,988 | 5,495 | ||
| Franchise and advances receivable, net | 103,004 | - | ||
| Inventory | (28,005) | 325,631 | ||
| Prepaid expenses and other current assets | 33,280 | 30,120 | ||
| Deposits | 14,886 | 3,063 | ||
| Operating right-of-use assets and lease liabilities, net | 13,131 | 38,772 | ||
| Accounts payable | (127,596) | 86,698 | ||
| Accrued expenses and other liabilities | 16,810 | (221,455) | ||
| Income tax receivables and payables, net | 58,034 | (138,850) | ||
| Deferred revenue | (149,311) | (38,193) | ||
| Net cash provided by operating activities | 1 | 1,181,787 | 1,298,219 | |
| Investing activities | ||||
| Issuance of franchise notes and advances receiveable | (230,507) | (620,157) | ||
| Payments received on franchise notes and advances receivable | 225,351 | 71,111 | ||
| Purchases of property and equipment | (10,843) | (135,609) | ||
| Net cash used for investing activities | _ | (15,999) | (684,655) | |
| Financing activities | ||||
| Principal payments on long-term debt | (883,333) | (883,333) | ||
| Net cash used for financing activities | (883,333) | (883,333) | ||
| Net change in cash | 282,455 | la. | (269,769) | |
| Cash, beginning of year | 832,847 | 1,102,616 | ||
| Cash, end of year | $ | 1,115,302 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs' 2025 Franchise Disclosure Document, the prepaid expenses and other current assets for operating activities in 2024 were $33,280. This figure reflects the amount the company has already paid for goods or services that will be used in the future.
For a prospective franchisee, prepaid expenses represent an upfront investment in items like insurance, rent, or supplies. These are costs that Fast Fix Jewelry And Watch Repairs has incurred but not yet fully consumed. The amount of prepaid expenses can fluctuate based on the timing of payments and the company's operational needs.
Understanding the level of prepaid expenses can help a franchisee assess the company's financial management and cash flow. It's a standard accounting practice to recognize these expenses over the period they benefit the business, providing a more accurate picture of profitability.