What was the change in trade accounts, notes, and lease receivable for Big Apple Bagels in 2023?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended November 30, 2024, 2023 and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Operating Activities | ||||
| Net Income | $ 433,770 | $ 432,927 | $ 429,951 | |
| Adjustments to reconcile net income to cash | ||||
| flows provided by operating activities: | ||||
| Depreciation | - | - | 748 | |
| Provision for doubtful accounts (recoveries) | 22,230 | 18,000 | (3,005) | |
| Loss on sales-type lease termination | 11,659 | - | (5,319) | |
| Deferred income tax (benefit)/expense | 4,150 | 19,448 | 75,966 | |
| Changes in: | ||||
| Trade accounts, notes and lease receivable | (278) | (32,537) | (28,999) | |
| Marketing Fund contributions receivable | (2,399) | (2,184) | 13,275 | |
| Prepaid expenses and other assets | 14,253 | 23,594 | (12,186) | |
| Accounts payable and accrued expenses | 79,167 | 7,312 | 8,680 | |
| Unexpended Marketing Fund | ||||
| franchisee contributions | (37,068) | (89,563) | (329,148) | |
| Deferred franchise fee revenue | (40,673) | 50,168 | 16,850 | |
| Net Cash Provided by Operating Activities | 484,811 | 427,165 | 166,813 | |
| Investing Activities | ||||
| Sale of equipment | 16,700 | - | - | |
| Advances to affiliates (net of repayments) | (172,652) | (276,802) | (324,240) | |
| Issuance of note receivable | (25,610) | - | - | |
| Net Cash Used in Investing Activities | (181,562) | (276,802) | (324,240) | |
| (Decrease)/Increase in Cash | 303,249 | 150,363 | (157,427) | |
| Cash and Restricted Cash, Beginning of Year | 2,034,040 | 1,883,677 | 2,041,104 | |
| Cash and Restricted Cash, End of Year | $ 2,337,289 | $ 2,034,040 | $ 1,883,677 | |
| Supplemental disclosure of cash flow information: | ||||
| Taxes paid (recorded through inter-company account) | $ 165,857 | $ 158,550 | $ 117,841 | |
| Interest paid | $ - | $ - | $ - | |
| Non-cash operating and investing activities | ||||
| Asset held for resale offsetting lease termination loss | $ 4,500 | $ - | $ - | |
| Adopted Accounting Pronouncements | ||||
| In June | 2016, November 30, | the FASB November 30, | issued ASU | 2016-13, |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the change in trade accounts, notes, and lease receivable in 2023 was a decrease of $32,537. This figure reflects the net change in what is owed to Big Apple Bagels from these specific types of accounts. This information is part of the broader financial statements that provide insight into the company's financial health and operational activities.
For a prospective franchisee, this number indicates how the receivables changed during that year. Receivables are amounts due to the company, and a negative change suggests that either fewer sales were made on credit, more debts were collected than originated, or some debts were written off. Understanding these changes can help a franchisee assess the financial dynamics of Big Apple Bagels and its franchisees.
It's important to note that this is just one line item in the financial statements. A comprehensive understanding would require analyzing the full context of the financial statements, including the balance sheet, income statement, and statement of cash flows. Prospective franchisees should consult with a financial advisor to fully understand the implications of these figures.