How much did Pearce Bespoke's accounts receivable change in 2023?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Contributions | - | | 54,245 | | Members' Equity (Deficiency), Ending | $ (471,984) | $ | 7,880 |
PEARCE BESPOKE FRANCHISING, LLC STATEMENTS OF CASH FLOWS
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Operating Activities: | ||||
| Net Loss | $ (479,864) | $ | (46,365) | |
| Adjustments to reconcile net loss to net cash | ||||
| provided by (used in) opera |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company's accounts receivable decreased by $22,188 in 2023. This figure is part of the statement of cash flows, which reconciles net income to net cash flow by adjusting for changes in balance sheet accounts.
This decrease in accounts receivable suggests that Pearce Bespoke collected more cash from its franchisees than it billed during the year. This could be a positive sign, indicating efficient revenue collection. However, it could also mean that Pearce Bespoke's sales slowed down at the end of 2023, leading to lower accounts receivable.
A prospective franchisee should investigate the reasons behind this decrease. Understanding whether it's due to efficient collections or slowing sales is crucial for assessing the financial health and future prospects of Pearce Bespoke. Reviewing the complete financial statements and discussing these trends with the franchisor can provide valuable insights.