What was the net cash used in investing activities 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) | |
| Increase/Decrease in due from parent | (2,016,520) | - | |
| Increase/Decrease in inventory | 1,065,214 | (1,582,637) | |
| Increase/Decrease in prepaid expenses | (171,458) | 91,641 | |
| Increase/Decrease in interest receivable | (11,878) | (12,530) | |
| Increase/Decrease in contract asset | (140,000) | - | |
| Increase/Decrease in deferred tax asset | 56,705 | (97,335) | |
| Increase/Decrease in accounts payable | 1,792,542 | 1,496,963 | |
| Increase/Decrease in accrued expenses | 50,353 | 9,721 | |
| Increase/Decrease in taxes payable | (9,627) | 14,290 | |
| Increase/Decrease in royalty payable | 2,780,651 | (1,593,686) | |
| Increase/Decrease in interest payable | 92,252 | 92,000 | |
| Increase/Decrease in unearned revenue | (103,250) | (134,250) | |
| Increase/Decrease in other current liabilities | 20,965 | (33,994) | |
| Increase/Decrease in due to parent | - | 5,174,292 | |
| Increase/Decrease in right of assets | 548,639 | (5,128,467) | |
| Net cash provided by operating activities | 2,253,594 | (3,472,119) | |
| Cash flows from investing activities: | |||
| Acquisition of new fixed assets | (437,360) | (611,641) | |
| Acquisition of intangible assets | (173,901) | (9,350) | |
| Increase/Decrease in loans to others | (308,836) | (230,916) | |
| Increase/Decrease in other receivables | (198,295) | (11,103) | |
| Increase/Decrease in security deposits | (274,094) | (10,708) | |
| Net cash used in investing activities | (1,392,486) | (873,718) | |
| Cash flows from financing activities: | |||
| Bank loan | (64,040) | (59,695) | |
| Increase/Decrease in lease liabilities | (405,580) | 4,955,595 | |
| Net cash provided by financing activities | (469,620) | 4,895,900 | |
| Net increase(decrease) in cash | 391,488 | 550,063 | |
| Cash, beginning of year | 1,999,340 | 1,449,277 $ 2,390,828 | $ 1,999,340 |
| Cash, end of year | |||
| Supplemental cash flow disclosures : | |||
| - Interest paid | $ 40,024 | $ 51,979 | |
| - Income taxes paid | $ 204,283 | $ 74,082 | |
| - Conversion of AP, royalty payable, due to parent into equity | $ 14,231,561 |
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the net cash used in investing activities in 2023 was $(873,718). This figure reflects the total cash outflow from investments made by Bb.Q Chicken during that year. These investments include the acquisition of new fixed assets, acquisition of intangible assets, increase/decrease in loans to others, increase/decrease in other receivables and increase/decrease in security deposits.
For a prospective franchisee, understanding the company's investment activities can provide insights into how Bb.Q Chicken is allocating its resources. A significant net cash outflow in investing activities might indicate that the company is expanding, upgrading its infrastructure, or making strategic investments for future growth. However, it is important to consider these figures in the context of the company's overall financial performance and strategic goals.
It's also worth noting that the specific types of investments made can vary from year to year, as seen in the different line items within the investing activities section. Reviewing these changes over time can help a franchisee understand the company's evolving investment priorities. Therefore, a franchisee should consider the investment activities in relation to operating and financing activities to get a better picture of the company's financial health.