What was the change in trade accounts receivable for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) |
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 receivable experienced a decrease of $1,403 in 2023. This figure is part of the adjustments made to reconcile the net loss to net cash provided by operating activities.
For a prospective franchisee, this indicates the net change in the money owed to Precision Door Service by its customers for goods or services provided during that year. A negative change suggests that Precision Door Service collected more on its receivables than it accrued during the year, or that some receivables were written off.
This information is useful for understanding the cash flow dynamics of Precision Door Service. It is important to consider this change in conjunction with other financial metrics to get a comprehensive view of the company's financial health and operational efficiency. Monitoring trade accounts receivable is a standard practice in assessing a company's ability to manage its working capital and convert sales into cash.