How did accounts receivable for Kitchen Solvers change in 2022?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Statements of Cash Flows | |||||
|---|---|---|---|---|---|
| Years Ended December 31, 2024, 2023, and 2022 | 2024 | 2023 | 2022 | ||
| Increase (decrease) in cash: | |||||
| Cash flows from operating activities | |||||
| Net income | $ 464,580 | $ 210,640 | $ 232,257 | ||
| Adjustments to reconcile net income to net | |||||
| cash provided by operating activities: | |||||
| Depreciation | 10,880 | 6,555 | 1,585 | ||
| Noncash lease expense | 40,121 | 10,262 | - | ||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | 75,001 | 1,889 | ( 47,979) | ||
| Accounts receivable - related party | ( 174,152) | - | - |
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the change in accounts receivable is detailed in the Statements of Cash Flows. For the year ended December 31, 2022, Kitchen Solvers' accounts receivable decreased by $47,979.
This decrease in accounts receivable indicates that Kitchen Solvers collected more cash from its customers than it invoiced during 2022. This could be due to more efficient collection efforts, changes in payment terms, or a decrease in sales on credit.
For a prospective franchisee, this information provides insight into the company's cash management and the efficiency of its revenue collection processes. Monitoring these trends over several years can help assess the financial health and stability of Kitchen Solvers.