What was the change in Accounts Payable Operating Eliminations amount for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gold Star Chili, Inc. | GSC Properties, LLC | TCWW, LLC | Eliminations | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Accounts Payable Operating | (970,695) | (9,217) | (21,615) | 246,396 | (755,131) | ||||
| GSC | |||||||||
| ------------------------------------------------------ | ------------------ | ---------------------- | --------------------- | ---------------- | ---------------------- | ||||
| Gold Star | Properties, | ||||||||
| Chili, Inc. | LLC | TCWW, LLC | Eliminations | Total | |||||
| Accounts Payable Operating | 534,335 | 43,480 | 47,874 | (53,490) | 572,199 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, in the category of Cash Flows From Operating Activities, the Accounts Payable Operating eliminations were $246,396 in 2024 and (53,490) in 2023. This represents a change of $299,886.
Accounts payable refers to the amount of money Gold Star owes to its suppliers for goods and services purchased on credit. The "eliminations" entry typically refers to adjustments made to consolidate financial statements, removing the effects of transactions between related entities within the Gold Star organization.
For a prospective franchisee, understanding these eliminations is less critical than understanding the overall accounts payable and the company's payment practices. It's more important to focus on the total accounts payable figures for Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC to assess the company's short-term liabilities and how efficiently it manages its payments to suppliers. A significant increase in accounts payable could indicate potential cash flow issues, while a decrease might suggest improved payment practices or a reduction in purchasing activity.