What was the change in inventory for Gold Star in the year ended December 31, 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
,208) | 51,027 | 953,524 | | Non-Controlling Interest in GSC Properties, LLC | 8,457,889 | 7,531,345 | 6,674,814 | | Accumulated Other Comprehensive Income | 113,503 | 77,216 | 226,662 | | Total Non-Controlling Interest in | | | | | GSC Properties, LLC | 8,571,392 | 7,608,561 | 6,901,476 | | Total Stockholders' Equity | 8,442,184 | 7,659,588 | 7,855,000 | | Total Liabilities and Stockholders' Equity | 34,551,579 | 33,559,654 | 31,213,387 | | $ | | $ | $ |
GOLD STAR CHILI, INC. CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
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GOLD STAR CHILI, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
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GOLD STAR CHILI, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
| Years Ended December 31, | |||
|---|---|---|---|
| 2024 2023 | (Restated) | ||
| Cash Flows From Operating Activities | |||
| Net Income | $ 2,498,270 $ 1,595,317 | $ 1,936,301 | |
| Reconciliation of Net Income with | |||
| Cash Flows From Operations | |||
| Depreciation | 1,249,072 930,216 | 807,295 | |
| Amortization | 63,323 | 70,168 69,297 | |
| Amortization on Loan Cost | 1 3,492 4 1,695 | 1 2,973 | |
| Loss on Disposal of Property and Equipment | - 4 4,694 | 5,367 | |
| Gain on Early Termination of Lease | - (26,298) | - | |
| Changes In | |||
| Accounts Receivable, Net | 206,833 292,502 | 524,429 | |
| Other Receivables | (589) 229,976 | (67,494) | |
| Inventory | 4 83,139 (354,258) | (479,542) | |
| Prepaid Expenses | 272,464 227,946 | (269,624) | |
| Contract Assets | - 3 6,849 | 1 14,057 | |
| Deposits | 1 43,766 1 0,156 | (239,834) | |
| Right of Use Asset - Operating Leases | 9 75,114 8 81,258 | 6 10,647 | |
| Operating Lease Liabilities | (790,746) (765,735) | (517,628) | |
| Bank Overdraft | - (432,410) | 4 32,410 | |
| Accounts Payable Operating | (755,131) 1,041,601 | (409,194) | |
| Gift Card Liability | 6,158 2,909 | 6,744 | |
| Deferred Franchise Fees | (17,826) (26,558) | (14,609) | |
| Accrued Wages and Other Liabilities | 2 61,526 2 6,786 | (3,854) | |
| Accrued Expenses and Other Liabilities | (205,784) 4 0,485 | (125,691) | |
| Cash Provided by |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the change in inventory for the year ended December 31, 2024, was an increase of $83,139. In 2023, the inventory decreased by $354,258. These figures are part of the consolidating statement of cash flows.
For a prospective franchisee, understanding inventory changes is crucial for managing cash flow. An increase in inventory, as seen in 2024, suggests that Gold Star purchased or produced more goods than it sold, which could tie up capital. Conversely, a decrease in inventory, as seen in 2023, indicates that Gold Star sold more than it purchased, freeing up cash but potentially risking stockouts if not managed carefully.
Franchisees should pay close attention to these trends, as they reflect Gold Star's supply chain management and sales performance. Efficient inventory management is essential for profitability, ensuring that franchisees have enough stock to meet demand without overstocking and incurring storage costs or risking spoilage. Monitoring these changes can help franchisees make informed decisions about ordering and promotional strategies.
It's also worth noting that the 2023 figures were restated, which could indicate adjustments made after the initial reporting. Franchisees should inquire about the reasons for any restatements to gain a clearer understanding of the financial data and ensure they are making decisions based on the most accurate information available.