What were the accounts payable for B Bops as of December 31, 2022?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
2021
| 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|
| Cash Flows from Operating Activities | ||||
| Cash Provided by Operating Activities Operating Revenue Interest Accrued Reconciliation of Net Income to Net Cash | $ 171,308 | $ 153,244 | $ 168,937 | $ 155,330 |
| 20,000 | 9,599 | 3,144 | 3,506 | |
| Provided by Operating Activities: Franchise Fee Receivable Accounts Payable | $ (30,422) | $ (1,732) | $ 203 | $ (2,318) |
| 7,596 | (487) | 487 | (41,912) | |
| $ 168,482 | $ 160,624 | $ 172,771 | $ 114,606 | |
| Cash Disbursed for Operating Activities: Professional Fees Bank Charges Salaries Payroll Taxes | $ (22,283) | $ (20,398) | $ (20,472) | $ (14,989) |
| (572) | (502) | (504) | (519) | |
| - | - | - | (100,000) | |
| - | - | - | (1,450) | |
| Net Cash Provided (Used) by Operating Activities | $ 145,627 | $ 139,724 | $ 151,795 | $ (2,352) |
| Cash Flows from Investing Activities: | ||||
| Investment in Note Receivable - Related Party | $ - | $ (20,608) | $ 32,380 | $ (3,034) |
| Investment in Note Receivable - Shareholder | (62,579) | (3,222) | (3,144) | |
| Net Cash Provided (Used) by Investing Activities | $ (62,579) | $ (23,830) | $ 29,236 | $ (3,034) |
| Cash Flows from Financing Activities: | ||||
| Shareholder Distributions | $ (7,596) | $ - | $ | $ |
| Net Cash Used by Financing Activities | $ (7,596) | $ | $ | $ |
| Net Increase (Decrease) in Cash and Cash Equivalents | $ 75,452 | $ 115,894 | $ 181,031 | $ (5,386) |
| Cash and Cash Equivalents at Beginning of Year | $ 467,403 | $ 351,509 | $ 170,478 | $ 175,864 |
| Cash and Cash Equivalents at End of Year | $ 542,855 | $ 467,403 | $ 351,509 | $ 170 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the accounts payable as of December 31, 2022, was $487. This figure is part of the company's cash flow statement, which outlines the movement of cash both into and out of the business during the specified period. Accounts payable specifically reflect the company's short-term obligations to its creditors or suppliers.
For a prospective B Bops franchisee, understanding the accounts payable is crucial as it provides insight into the company's financial health and its ability to manage short-term liabilities. A higher accounts payable might indicate that the company is leveraging its credit terms with suppliers, while a lower figure could suggest that the company prefers to pay its obligations promptly. Monitoring these trends can help franchisees assess the financial stability of B Bops.
It's also important to note that the cash flow statement includes other key elements such as operating revenue, interest accrued, and reconciliation of net income to net cash. These components, along with accounts payable, collectively paint a picture of the company's financial activities and its overall cash management strategy. Reviewing these figures over several years, as presented in the document, allows for a comparative analysis that can reveal important financial trends and potential areas of concern or strength.
Therefore, a potential franchisee should analyze the accounts payable in conjunction with other financial metrics to gain a comprehensive understanding of B Bops' financial standing and its implications for the franchisee's investment.