What was the change in accrued liabilities for Itan in 2022?
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, 2023 | 1,500 | $ 50,000 | $ | 38,000 | $ 1,704,663 | $ 1,792,663 | | | | | | | | |
| Page 7 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| CASH FLOWS PROVIDED BY OPERATING ACTIVITIES | ||||
| Net earnings | $ | 272,146 | $ | 233,770 |
| ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH | ||||
| PROVIDED/(USED) BY OPERATING ACTIVITIES | ||||
| Depr |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company's accrued liabilities decreased by $26,670 in 2022. This figure is derived from the cash flow statement, which reconciles net earnings to net cash provided or used by operating activities.
Accrued liabilities represent obligations that Itan has incurred but not yet paid, such as wages, taxes, or interest. A decrease in accrued liabilities suggests that Itan paid off more of these obligations during 2022 than it accrued.
For a prospective franchisee, this information provides insight into Itan's financial management and its ability to manage its short-term obligations. Monitoring changes in accrued liabilities over time can reveal trends in the company's payment patterns and its overall financial health. A significant decrease could indicate improved cash flow management, while a large increase might signal potential financial strain.