What was the decrease in income taxes payable for Bevaris Alliance in 2023?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| NET INCOME (LOSS) | $( 57,665 ) | $ 130,380 |
| 2023 | 2022 | |
|---|---|---|
| BALANCE, BEGINNING OF YEAR | $ 170 , 724 | $ 42,901 |
| CAPITAL CONTRIBUTIONS | _ | |
| SHAREHOLDER DISTRIBUTIONS | ( 197) | ( 2,557) |
| NET INCOME (LOSS) | _(_57,665) | 130,380 |
| BALANCE, END OF YEAR | $ 112,862 | $ 170,724 |
| 2023 | 2022 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: Net income(loss) | ¢/ 57 665\ | 6 120 200 |
| Adjustments to reconcile net | $( 57,665 ) | $ 130,380 |
| income(loss) to net cash provided | ||
| (used) by operating activities: | 14,656 | 6,107 |
| Depreciation and amortization | ||
| Changes in operating assets and | 14,000 | 0,107 |
| liabilities: | ||
| Decrease in a |
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the decrease in income taxes payable in 2023 was $(3,742). This figure represents the change in the company's income tax obligations from 2022 to 2023.
For a prospective franchisee, this indicates a reduction in the income taxes Bevaris Alliance owed. It's important to note that the company's tax structure is such that federal income taxes are not directly paid by the company but are instead passed through to the member's individual tax returns. However, the company is subject to a minimum tax in California.
This decrease could be due to various factors, such as changes in profitability, tax planning strategies, or adjustments in state tax regulations. While this specific figure might not directly impact a franchisee's operations, understanding the franchisor's financial health and tax management practices is crucial for assessing the overall stability and performance of the Bevaris Alliance franchise system.