What was the net cash provided by (used for) operations for Aunt Millies Bakeries in 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash flows from operations | ||||
| Net income | $ | 23,227,730 | $ | 14,199,697 |
| Adjustments to reconcile net income to net cash provided by | ||||
| operations | ||||
| Depreciation and amortization | 8,028,212 | 8,371,434 | ||
| Lease expense | 5,077,980 | 6,704,501 | ||
| Gain from property disposal | (44,215) | (339,370) | ||
| Change in assets and liabilities: | ||||
| Receivables, net | 3,203,768 | (3,671,470) | ||
| Inventories, net | (1,165,834) | (972,290) | ||
| Prepaid expenses | (1,616,170) | (1,064,138) | ||
| Other assets | 777,112 | (115,533) | ||
| Accounts payable | (2,611,171) | 1,925,254 | ||
| Pension plan withdrawal liability | (541,637) | (507, 177) | ||
| Lease payable | (5,076,082) | (7,099,381) | ||
| Accrued expenses and other liabilities | 2,349,494 | _ | (508,861) | |
| Net cash provided by operations | 31,609,187 | 16,922,666 | ||
| Cash flows from investing activities | ||||
| Capital expenditures | (9,556,478) | (6,639,634) | ||
| Investment purchases | (2,775,859) | - | ||
| Payments received from notes receivable | (800,603) | 711,589 | ||
| Proceeds received from sale of property | 218,559 | _ | 310,028 | |
| Net cash used for investing activities | (12,914,381) | (5,618,017) | ||
| Cash flows from financing activities | ||||
| Borrowings on line of credit | - | 74,936,095 | ||
| Payments on line of credit | - | (80,640,650) | ||
| (Payments) borrowings on subordinated revolving credit facility | (766,915) | 288,402 | ||
| Proceeds from issuance of long-term obligations | - | 2,600,000 | ||
| Principal payments on long-term obligations | (3,072,515) | (1,426,620) | ||
| Distributions paid to stockholders | (9,206,403) | _ | ||
| Net cash used for financing activities | (13,045,833) | _ | (4,242,773) | |
| Net increase in cash | 5,648,973 | 7,061,876 | ||
| Cash and cash equivalents, beginning of year | _ | 7,799,651 | 737,775 | |
| Cash and cash equivalents, end of year | $ | 13,448,624 | $ | 7,799,651 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the net cash provided by operations in 2023 was $16,922,666. This figure represents the cash generated from the company's core business activities during that year. It's a key indicator of Aunt Millies Bakeries's financial health and its ability to fund its operations and growth.
To arrive at this number, Aunt Millies Bakeries started with a net income of $14,199,697 and made several adjustments. These adjustments include adding back non-cash expenses like depreciation and amortization ($8,371,434) and lease expenses ($6,704,501), as well as accounting for gains from property disposal (-$339,370). Changes in assets and liabilities, such as receivables, inventories, prepaid expenses, other assets, accounts payable, pension plan withdrawal liability, lease payable and accrued expenses, were also factored in. These adjustments reconcile the net income to the actual cash flow generated by operations.
For a prospective franchisee, a positive net cash flow from operations suggests that Aunt Millies Bakeries is effectively managing its working capital and generating sufficient cash to cover its operating expenses. This can be a reassuring sign, indicating the company's stability and potential for future profitability. It's important to note that while net cash provided by operations is a valuable metric, it should be considered alongside other financial indicators to gain a comprehensive understanding of Aunt Millies Bakeries's financial performance.