What was the net cash provided by operating activities for B Bops in 2021?
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's 2025 Franchise Disclosure Document, the net cash provided (used) by operating activities in 2021 was a negative $2,352. This indicates that B Bops used more cash than it generated from its core business operations during that year.
For a prospective franchisee, this figure is important because it provides insight into the financial health and stability of B Bops. A negative cash flow from operating activities could signal potential challenges in managing expenses, generating revenue, or both. It's essential to consider this in the context of B Bops's overall financial performance and trends over multiple years.
It is also important to note that in 2021, B Bops disbursed cash for operating activities including salaries of $100,000 and payroll taxes of $1,450. These are significant expenses that contributed to the negative net cash flow. A potential franchisee should investigate the reasons behind these expenses and whether they are likely to continue in the future. Understanding these factors will help a franchisee assess the financial risks and opportunities associated with investing in a B Bops franchise.