What was the change in accounts receivable for Mr. Sandless at the end of the year 2022?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses | 1,511,123 | 1,060,753 | | Net Income (Loss) | (90,611) | 63,998 | | Members' (Deficit) - Beginning | (76,192) | (88,149) | | Members' (Distributions) | (36,253) | (52,041) | | Members' (Deficit) - Ending | $ (203,056) | $ (76,192) |
MR. SANDLESS FRANCHISE, LLC STATEMENT OF CASHFLOWS
| YEARS ENDED DECEMBER 31 | |||
|---|---|---|---|
| 2022 | 2021 | ||
| Cash Flow |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the change in accounts receivable at the end of 2022 was an increase of $1,581. This figure is part of the cash flow statement, which reconciles net income to net cash provided by operating activities. It reflects adjustments made to net income to account for non-cash transactions and changes in balance sheet items.
An increase in accounts receivable typically suggests that Mr. Sandless provided more services or products on credit during 2022 compared to 2021. This could be due to increased sales or a change in credit policies. However, it also means that Mr. Sandless has more money tied up in outstanding invoices, which could affect its short-term liquidity.
For a prospective franchisee, this information is useful for understanding how Mr. Sandless manages its cash flow and working capital. While a small increase in accounts receivable may not be a cause for concern, a significant or rapidly growing balance could indicate potential issues with collecting payments from customers. It is important to consider this figure in conjunction with other financial metrics to get a comprehensive view of Mr. Sandless's financial health.