What was the net cash provided by operating activities for 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
tributions to Members | (750,000) | - | (750,000) | | Balances at December 31, 2023 | $ (3,765,800) $ | (1,419,519) $ | (5,185,319) | | Net loss | - | (687,795) | (687,795) | | Balances at December 31, 2024 | $ (3,765,800) $ | (2,107,314) $ | (5,873,114) | | | 2024 | 2023 | |----------------------------------------------------------------|-----------------------|-------------| | | | | | Cash flows from operating activities | | | | Net loss | $ (687,795) $ | (733,879) | | Adjustments to reconcile net income to net cash | | | | provided by (used in) operating activities | | | | Depreciation and amortization | 1,983,683 | 1,804,818 | | Amortization of deferred loan costs | 91,061 | 79,207 | | Changes in assets and liabilities | | | | Accounts receivable | (380,320) | (661,073) | | Prepaid expenses and other current assets | (1,179,793) | (31,950) | | Other assets | (791,295) | (1,564,311) | | Accounts payable | (1,138) | 243,259 | | Acc
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $1,461,845. This indicates the amount of cash 360 Painting generated from its core business operations during that year.
To arrive at this figure, 360 Painting started with a net loss of ($733,879) and made several adjustments to reconcile it to the net cash flow. These adjustments included adding back non-cash expenses like depreciation and amortization ($1,804,818) and amortization of deferred loan costs ($79,207).
Additionally, changes in assets and liabilities were factored in, such as accounts receivable ($-661,073), prepaid expenses and other current assets ($-31,950), other assets ($-1,564,311), accounts payable ($243,259), accrued and other liabilities ($209,310), deferred revenue ($311,391), lease liability ($-102,966), and other long-term liabilities ($1,908,039). These adjustments reflect the actual cash inflows and outflows related to 360 Painting's operations, providing a clearer picture of its financial health.