What was the increase/decrease in accounts receivable for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net Income (loss) | $ (51,129) | $ 107,888 | |
| Adjustment to reconcile net income (loss) to net cash | |||
| used in operating activities: | |||
| Depreciation & amortization | 402,980 | 368,402 | |
| Bad debt expenses | 42,846 | 9,370 | |
| Provision for inventory reserves | 12,320 | 12,350 | |
| Increase/Decrease in accounts receivable | (2,108,010) | (2,266,137) |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the company experienced a decrease in accounts receivable of $2,266,137 in 2023. This figure is part of the adjustments made to reconcile net income (loss) to net cash used in operating activities. In comparison, the decrease in accounts receivable for 2024 was $(2,108,010).
Accounts receivable represents the money owed to Bb.Q Chicken by its customers or franchisees for goods or services delivered but not yet paid for. A significant decrease in accounts receivable, as seen in 2023, could suggest that the company collected a substantial portion of its outstanding receivables or that sales on credit decreased.
For a prospective franchisee, this information is useful for understanding the financial dynamics of Bb.Q Chicken. Monitoring changes in accounts receivable can provide insights into the company's efficiency in collecting payments and managing its working capital. A large decrease, while seemingly positive, should be examined further to understand the underlying reasons and potential implications for future cash flow.