What was the change in accounts receivable for Pearce Bespoke in 2024?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 60,463 | \$ | (502,101) | \$ | (441,638) |
PEARCE BESPOKE FRANCHISING, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2024
| 2024 | |
|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Net (loss) | $ (22,237) |
| Adjustments to reconcile net income (loss) to net | |
| cash provided by operating activities: | |
| Amortization expense | 1,010 |
| Recognition of deferred commissions | 145,502 |
| Recognition of non-refundable deferred franchise fees | (872,417) |
| Changes in assets and liabilities | |
| Accounts receivable | (83,157) |
| Deferred commissions | (156,000) |
| Accounts payable and accrued expenses | 32,700 |
| Franchisee payable | 151,944 |
| Non-refundable deferred franchise fees | 433,500 |
| Net cash (used) by operating activities | (369,155) |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Net cash (used) for investing activities | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Member contributions | 52,583 |
| Proceeds from notes payable | 409,200 |
| Payments on notes payable | (242,818) |
| Advances to related party | - |
| Net cash (used) by financing activities | 218,965 |
| NET INCREASE (DECREASE) IN CASH | (150,190) |
| CASH, BEGINNING | 170,147 |
| CASH, ENDING | $ 19,957 |
| SUPPLEMENTAL DISCLOSURES | |
| Cash paid for interest | $ 63,396 |
| Cash paid for taxes |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the change in accounts receivable in 2024 was a decrease of $83,157. This figure is part of the statement of cash flows, specifically within the cash flows from operating activities section.
Accounts receivable represents the money owed to Pearce Bespoke by its franchisees or customers for goods or services delivered but not yet paid for. A decrease in accounts receivable typically indicates that Pearce Bespoke collected more money from its customers than it billed during the year. 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 revenue collection practices. A significant decrease in accounts receivable could be a positive sign, suggesting that Pearce Bespoke is effectively managing its finances and collecting payments in a timely manner. However, it's important to consider this figure in conjunction with other financial data to get a comprehensive understanding of the company's financial health.