What was the change in accounts receivable for Itan in 2023?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
------|---------|------------------|--------------|------------------------|---------|--|---------|--|---------|--|----------|--------| | | Shares | Amount | capital | | capital | | capital | | capital | | capital | | earnings | equity | | Balance at December 31, 2021 | 1,500 | $ 50,000 | $ | 38,000 | $ 1,198,747 | $ 1,286,747 | | | | | | | | | | Net earnings | | | | i.e.i | 233,770 | 233,770 | | | | | | | | | | Balance at December 31, 2022 | 1,500 | 50,000 | | 38,000 | 1,432,517 | 1,520,517 | | | | | | | | | | Net earnings | | vā. | | = | 272,146 | 272,146 | | | | | | | | | | Balance at December 31, 202
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the change in accounts receivable in 2023 was an increase of $4,540. This figure is part of the adjustments to reconcile net earnings to net cash provided by operating activities.
Accounts receivable represents money owed to Itan by its customers or franchisees for goods or services delivered but not yet paid for. An increase in accounts receivable suggests that Itan generated more sales on credit in 2023 compared to the previous year.
For a prospective Itan franchisee, understanding these changes in operating assets and liabilities can provide insights into the company's financial health and operational efficiency. Monitoring accounts receivable trends can help assess the effectiveness of Itan's credit policies and collection efforts.