What was the change in trade accounts payable for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
istribution to parent | - | - | (324,718) | - | - | (324,718) | | Equity-based compensation | - | - | 4,194 | - | - | 4,194 | | Foreign currency translation adjustment | - | - | - | - | 8,527 | 8,527 | | Net loss | - | - | - | (439,076) | - | (439,076) | | Balance – | 100 | $ - | $ 2,100,435 | $ (489,405) | $ (42,956) $ | 1,568,074 | | December 31, 2023 | | | | | | |
Consolidated Statements of Cash Flows ($000's)
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Operating activities | ||
| Net loss | $ (439,076) $ | (35,746) |
| Adjustments to reconcile net loss to net cash provided by | ||
| operating activities: | ||
| Depreciation and amortization | 116,929 | 104,943 |
| Amortization of deferred financing costs | 4,164 | 1,447 |
| Loss on impairment of goodwill and tradenames | 428,286 | 51,454 |
| Bad debt expense | 2,812 | 2,398 |
| Notes received | (15,243) | (13,059) |
| Collections of notes receivable | 16,605 | 13,965 |
| Deferred income taxes | (44,346) | (44,898) |
| (Gain) loss on disposal of assets | - | (538) |
| Equity-based compensation | 4,194 | 3,414 |
| Changes in assets and liabilities, net of business acquisitions: | ||
| Trade accounts receivable | (1,403) | (11,523) |
| Inventories | 626 | (1,281 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the trade accounts payable decreased by $6,249 in 2023. This figure is part of the changes in assets and liabilities related to operating activities for the year ended December 31, 2023.
Trade accounts payable represent the amounts Precision Door Service owes to its suppliers for goods and services purchased on credit. A decrease in trade accounts payable suggests that Precision Door Service paid off more of its outstanding balances to suppliers than it incurred in new payables during the year.
For a prospective franchisee, this information provides insight into Precision Door Service's financial management and its relationships with suppliers. Monitoring changes in accounts payable can indicate how efficiently Precision Door Service manages its short-term liabilities and working capital. A significant decrease could imply improved cash flow management or changes in purchasing strategies.