What was the change in accounts receivable for Kitchen Solvers in 2024?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
1 | 0 | | TN | 0 | 1 | 0 | | MN | 0 | 1 | 0 | | TOTAL | 0 | 3 | 0 |
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) | - | - |
| Contract assets | (61,597) | (107,296) | (194,671) |
| Advances receivable | - | 74,472 | 75,000 |
| Other receivable | - | 3,260 | (3,260) |
| Inventory | (14,536) | (14,106) | - |
| Prepaid expenses | 16 | (2,293) | - |
| Accounts payable | 31,571 | (38,816) | 55,390 |
| Accrued and other liabilities | 17,806 | - | - |
| Deferred revenue | 12,268 | 76,042 | - |
| Contract liabilities | 229,411 | 171,452 | 275,741 |
| Lease liabilities - operating | (39,479) | (10,529) | - |
| Net change in cash from operating activities | 591,890 | 381,532 | 394,063 |
| Cash flows from investing activities: | |||
| Purchases of property and equipment | (53,517) | (73,253) | - |
| Net change in cash from investing activities | (53,517) | (73,253) | - |
| Cash flows from financing activities | |||
| Note payable - Officer | 2,455 | (16,126) | 18,049 |
| Proceeds from long-term debt | - | 56,700 | - |
| Principal payments on long-term debt | (18,523) | (13,020) | - |
| Member distributions | (304,910) | (204,000) | (409,849) |
| Net change in cash from financing activities | (320,978) | (176,446) | (391,800) |
| Net change in cash | 217,395 | 131,833 | 2,263 |
| Cash, beginning of year | 192,541 | 60,708 | 58,445 |
| Cash, end of year | $ 409,936 | $ 192,541 | $ 60,708 |
| Supplemental cash flow information: | |||
| Cash paid during the year for: | |||
| Interest | $ 2,602 | $ 3,236 | $ - |
| Operating cash flows from operating lease liabilities | $ 41,121 | $ 40,651 | $ 33,613 |
| Noncash reconciling items: | |||
| Equipment acquired with debt issuance | $ - | $ 56,700 | $ - |
| ROU asset obtained in exchange for new | |||
| operating lease liabilities | $ - | $ 43,067 | $ 92,688 |
Notes to Financial Statements
See Independent Auditor's Report
Note 1 Summary of Significant Accounting Policies
Principal Business Activity
KS La Crosse Investment, LLC (the "Company") is a franchisor of retail outlets in cabinetry. The majority of the Company's revenue results from initial sales and continuing franchise fees and rebills.
During 2023, the Company began manufacturing and selling cabinets to its franchisees. The Company's raw materials are readily available, and the Company is not dependent on a single or few suppliers.
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the accounts receivable increased by $75,001 in 2024, compared to an increase of $1,889 in 2023. Additionally, accounts receivable from a related party decreased by $174,152 in 2024, where there was no recorded value in 2023. These figures reflect changes in the amounts owed to Kitchen Solvers by its customers and related entities. These values are reported as part of the cash flows from operating activities.
For a prospective Kitchen Solvers franchisee, understanding these changes in accounts receivable is crucial. An increase in accounts receivable could indicate growing sales, but it also suggests that Kitchen Solvers is extending more credit to its customers. The decrease in accounts receivable from a related party could signal changes in the financial relationship between Kitchen Solvers and its affiliates. Monitoring these trends can help a franchisee assess the financial health and operational efficiency of Kitchen Solvers.
It's important to note that these figures are part of a broader financial statement and should be analyzed in conjunction with other financial data, such as revenue, expenses, and liabilities, to gain a comprehensive understanding of Kitchen Solvers' financial performance. A potential franchisee should also inquire about the credit policies and collection practices of Kitchen Solvers to better understand the risks associated with accounts receivable. Furthermore, it is important to understand the nature of the related party transactions and their potential impact on the overall financial stability of the franchise.