What was the amount of cash provided by operating activities for 1-800-GOT-JUNK? for the period ended May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
For the period ended May 31, 2025 and 2024
May 31 May 31
Cash provided by (used in):
Operating: Net income for the period
$ 288,999 $ 266,526 Items not involving cash: Amortization 9,288 20,952 Deferred income tax expense 59,707 32,952 Current income tax expense 25,716
Interest accrued for due to related parties 303,956 178,974 Bad debt
145,077 Income taxes paid (292,897) (69,581)
394,769 574,900 Changes in non-cash operating items: Accounts receivables 1,907,548 10,838,454 Due from related parties (1,340,526) (444,834) Prepaid expenses 237,174 13,745 Short-term investment (1,044) (538) Accounts payable and accrued liabilities (3,290,212) (541,944) Payable to franchisees (1,059,187) (10,075,702) Deferred revenue (37,475) (78,096) Due to related parties 5,710,937 2,797,879 Deposits 50,000
Withholding tax payable 226,407 (11,710)
2,798,391 3,072,154
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the cash provided by operating activities for the period ended May 31, 2025, was $2,798,391. This contrasts with $3,072,154 for the same period in 2024. This figure is derived from the consolidated statement of cash flows.
To arrive at this figure, 1-800-GOT-JUNK? starts with the net income for the period, which was $288,999. Then, they add items not involving cash, such as amortization ($9,288), deferred income tax expense ($59,707), current income tax expense ($25,716), and interest accrued for due to related parties ($303,956). They also account for bad debt and income taxes paid.
Finally, 1-800-GOT-JUNK? adjusts for changes in non-cash operating items like accounts receivables, due from related parties, prepaid expenses, short-term investments, accounts payable and accrued liabilities, payable to franchisees, deferred revenue, due to related parties, deposits, and withholding tax payable. These adjustments reflect the actual cash impact of these items, providing a clearer picture of the cash generated from 1-800-GOT-JUNK?'s core operations.