What was the increase/decrease in interest 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/decrease in interest payable was $92,000 in 2023 and $92,000 in 2022. This means there was no change in interest payable between 2022 and 2023.
Interest payable represents the amount of interest expense that Bb.Q Chicken owes but has not yet paid as of the end of the accounting period. This liability arises from various debt obligations, such as loans from banks, parent companies, or other lenders. Monitoring interest payable is crucial for assessing a company's short-term financial obligations and its ability to manage its debt effectively.
For a prospective franchisee, understanding the franchisor's interest payable can offer insights into the financial health and debt management practices of Bb.Q Chicken. While the interest payable remained constant from 2022 to 2023, it's important to consider the overall debt structure and interest rates associated with these liabilities. Reviewing the notes to the consolidated financial statements can provide additional details on the nature and terms of the loans contributing to the interest payable. Franchisees should also inquire about any potential changes in debt obligations or interest rates that could impact future profitability.