What was the increase/decrease in accounts payable for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
AINED DEFICIT - ending | (3,554,585) | (3,662,473) |
Consolidated Statements of Cash Flow December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net Income (loss) | $ 107,888 | $ 94,548 |
| Adjustment to reconcile net income (loss) to net cash | ||
| used in operating activities: | ||
| Depreciation & amortization | 368,402 | 233,324 |
| Increase/Decrease in accounts receivable | (2,256,767) | (328,765) |
| Increase/Decrease in inventories | (1,570,287) | (2,776,492) |
| Increase/Decrease in prepaid expenses | 91,641 | 383,504 |
| Increase/Decrease in interest receivable | (12,530) | (4,020) |
| Increase/Decrease in due to parent | 5,174,292 | - |
| Increase/Decrease in deferred tax asset | (97,335) | (132,543) |
| Increase/Decrease in accounts payable | 1,496,963 | 2,442,936 |
| Increase/Decrease in accrued expenses | 9,721 | (95,548) |
| Increase/Decrease in taxes payable | 14,290 | 32,350 |
| Increase/Decrease in royalty payable | (1,593,686) | 428,569 |
| Increase/Decrease in interest payable | 92,000 | 92,000 |
| Increase/Decrease in other current liabilities | (33,994) | 89,582 |
| Increase/Decrease in unearned revenue | (134,250) | 166,250 |
| Net cash provided by operating activities | 1,656,348 | 625,695 |
| Cash flows from investing activities: | ||
| Acquisition of new fixed assets | (611,641) | (1,169,150) |
| Acquisition of intangible asset | (9,350) | (38,251) |
| Increase/Decrease in investment | - | (1,600,000) |
| Increase/Decrease in loans to franchises | (230,916) | (185,927) |
| Increase/Decrease in loans to others | (11,103) | 29,483 |
| Increase/Decrease in security deposits | (10,708) | (36,015) |
| Increase/Decrease in right of assets | (5,128,467) | (3,642,797) |
| Net cash used in investing activities | (6,002,185) | (6,642,657) |
| Cash flows from financing activities: | ||
| Bank loan | (59,695) | 473,269 |
| Increase/Decrease in lease liabilities | 4,955,595 | 3,775,961 |
| Net cash provided by financing activities | 4,895,900 | 4,249,230 |
| Net increase(decrease) in cash | 550,063 | (1,767,732) |
| Cash, beginning of year | 1,449,277 | 3,217,009 |
| Cash, end of year | $ 1,999,340 | $ 1,449, |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the increase in accounts payable for 2023 was $1,496,963, while in 2022, the increase was $2,442,936. Accounts payable represent the short-term liabilities Bb.Q Chicken owes to its suppliers and other creditors. An increase in accounts payable typically indicates that the company is purchasing more goods or services on credit.
For a prospective franchisee, understanding these figures is crucial as it provides insight into the company's financial management and its ability to manage its short-term obligations. A significant increase in accounts payable could suggest that Bb.Q Chicken is expanding its operations or is negotiating more favorable credit terms with its suppliers. However, it could also indicate potential cash flow issues if not managed properly.
It's important to note that these figures are part of the consolidated financial statements, which include the accounts of the company and its subsidiaries. Therefore, the accounts payable balance reflects the overall financial position of the entire Bb.Q Chicken organization, not just the franchisor entity. A prospective franchisee should consider these trends in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.