What was the total amount of Spray Net's accounts payable and accrued expenses at the end of 2024?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
g revenues | 210,000 | 60,000 | 320,000 | | Royalties | 446,767 | 489,788 | 260,661 | | Local and digital marketing revenues | 1,490,118 | 1,144,512 | 551,057 | | Other | 200,603 | 267,841 | 138,115 | | Total Revenues | 2,863,931 | 2,596,651 | 1,567,875 | | Operating Expenses | 3,701,092 | 1,663,428 | 2,296,886 | | Net Income (Loss) Before Taxes | (837,161) | 933,223 | (729,011) | | Income Tax Benefit (Expense) | 36,616 | (93,518) | 38,725 | | Net Income (Loss) | (800,545) | 839,705 | (690,286) | | Stockholder's equity (Deficit) - Beginning | 22,784 | (816,921) | (167,748) | | Prior Period Adjustment | | | 41,113 | | Stockholders' equity (Deficit) - Ending | $ (777,761) | $ 22,784 | $ (816,921) |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income (loss) | $ (800,545) | $ 839,705 | $ (729,011) |
| Amortization expense | _ | 7,411 | $ 7,411 |
| Adjustments to reconcile net (loss) to cash | |||
| provided by operating activities: | |||
| Changes in assets and liabilities | |||
| Accounts receivable | 227,980 | 135,177 | (286,853) |
| Prepaid expenses | 10,000 | 92,481 | (30,222) |
| Contract Assets | (74,854) | (311,500) | (1,086,333) |
| Due from related parties | 52,045 | (121,956) | _ |
| Deferred tax benefit | (65,349) | 93,518 | (13,722) |
| Accounts payable and accrued expenses | 4,1 |
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the company's accounts payable and accrued expenses at the end of 2024 totaled $4,151. This figure reflects the company's short-term liabilities, representing obligations to suppliers and other creditors for goods and services received but not yet paid for.
For a prospective Spray Net franchisee, understanding accounts payable and accrued expenses is crucial for assessing the company's financial health and stability. A low figure, as seen in 2024, might indicate efficient management of short-term liabilities. However, it's essential to consider this figure in conjunction with other financial metrics to gain a comprehensive view of Spray Net's financial position.
It's also worth noting the fluctuations in this account over the three-year period presented in the FDD. In 2023, the accounts payable and accrued expenses were ($172,638), while in 2022, they stood at $44,837. These variations could be due to changes in payment cycles, business activity, or accounting practices. A prospective franchisee should inquire about the reasons for these fluctuations to better understand the company's financial management practices.