What was the gain from property disposal for Aunt Millies Bakeries in 2022?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------|-------------------------------------|---------------------------------------| | Net income (loss) | $ 14,199,697 | $ (5,256,940) | | Other comprehensive income (loss) Interest rate swap Change in benefit plans, net | | | | | (281,013) | 307,182 | | | 556,711 | (458,749) | | | 275,698 | (151,567) | | Comprehensive income (loss) | $ 14,475,395 | $ (5,408,507) |
PERFECTION BAKERIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended September 30, 2023 and 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| Cash flows from operations | ||||
| Net income (loss) | $ | 14,199,697 | $ | (5,256,940) |
| Adjustments to reconcile net income (loss) to net cash provided by | , , | |||
| (used for) operations | ||||
| Depreciation and amortization | 8,371,434 | 8,235,893 | ||
| Lease expense | 6,704,501 | - | ||
| Gain from property disposal | (339,370) | (371,313) | ||
| Change in assets and liabilities: | ||||
| Receivables, net | (3,671,470) | (2,874,426) | ||
| Inventories, net | (972,290) | (2,928,397) | ||
| Prepaid expenses | (1,064,138) | (353,554) | ||
| Other assets | (115,533) | 419,033 | ||
| Accounts payable | 1,925,254 | 3,207,295 | ||
| Pension plan withdrawal liability | (507, 177) | (474,913) | ||
| Lease payable | (7,099,381) | - | ||
| Accrued expenses and other liabilities | (508,861) | _ | (4,864,365) | |
| Net cash provided by (used for) operations | 16,922,666 | (5,261,687) | ||
| Cash flows from investing activities | ||||
| Capital expenditures | (6,639,634) | (6,267,927) | ||
| Payments received from notes receivable | 711,589 | 816,239 | ||
| Proceeds received from sale of property | 310,028 | (44,670) | ||
| Net cash used for investing activities | (5,618,017) | (5,496,358) | ||
| Cash flows from financing activities | ||||
| Borrowings on line of credit | 74,936,095 | 68,684,532 | ||
| Payments on line of credit | (80,640,650) | (62,459,825) | ||
| Borrowings on subordinated revolving credit facility | 288,402 | - | ||
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the gain from property disposal in 2022 was reported as a negative $371,313. This figure is part of the adjustments used to reconcile net income (loss) to net cash provided by (used for) operations.
A negative gain from property disposal suggests that Aunt Millies Bakeries likely incurred a loss when disposing of property during that year. This could be due to selling assets for less than their book value or incurring costs associated with the disposal.
For a prospective franchisee, this information provides insight into the company's financial performance and how it manages its assets. While a single year's loss on property disposal may not be a major concern, it's worth considering in the context of the company's overall financial health and trends over multiple years.