What was the increase/decrease in other current liabilities for Bb.Q Chicken in 2022?
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/decrease in other current liabilities in 2022 was an increase of $89,582. This figure is part of the cash flows from operating activities. For a prospective franchisee, this indicates a change in short-term financial obligations not categorized elsewhere, such as short-term debt or pending legal settlements.
This increase in other current liabilities suggests that Bb.Q Chicken had more short-term obligations in 2022 compared to the previous year. This could be due to various factors, such as increased short-term borrowing, delayed payments to suppliers, or accrued expenses. Franchisees should be aware of these fluctuations as they can impact the company's overall financial health and ability to support its franchisees.
Understanding the reasons behind changes in current liabilities is crucial for assessing the financial stability of Bb.Q Chicken. While an increase isn't inherently negative, it warrants further investigation to ensure it aligns with the company's growth strategy and doesn't indicate underlying financial strain. Prospective franchisees should seek clarification from Bb.Q Chicken regarding the specific components of 'other current liabilities' and the reasons for the increase in 2022 to make an informed investment decision.