What was the net income (loss) for Bb.Q Chicken in 2023?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
)
Consolidated Statements of Cash Flow December 31, 2024 and 2023
| 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 |
| Cash, end of year | $ 2,390,828 | $ 1,999,340 |
| 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 | |
| See Acc |
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 income for 2023 was $107,888. This figure is part of the cash flow statement, which outlines the movement of cash both into and out of the company during that year. It's important to note that this net income is a component of the overall cash flow from operating activities.
For a prospective franchisee, understanding the net income is crucial as it provides insight into the financial performance of Bb.Q Chicken. However, it's equally important to consider the adjustments made to reconcile the net income to the net cash used in operating activities. These adjustments include items like depreciation and amortization, changes in accounts receivable and payable, and other non-cash transactions that impact the company's cash flow.
Therefore, while the net income figure offers a snapshot of profitability, a comprehensive understanding of Bb.Q Chicken's financial health requires analyzing the entire cash flow statement. This includes examining the cash flows from operating, investing, and financing activities to get a complete picture of how the company generates and uses cash.