What was the net cash provided by operating activities for Big Apple Bagels in 2024?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| - | - | | | Other | 34,253 | 36,628 | 47,099 | | | Marketing fund expense | 1,176,663 | 1,243,890 | 1,081,320 | | | Total Operating Costs and Expenses | 2,729,907 | 2,677,089 | 2,419,376 | | Income from Operations | 601,703 | 610,468 | 597,846 | | | Interest Income | 2,074 | 456 | 412 | | | Income before Income Taxes | 603,777 | 610,924 | 598,258 | | | Provision/(Benefit) for Income Taxes | | | | | | | Current | 165,857 | 158,549 | 92,341 | | | Deferred | 4,150 | 19,448 | 75,966 | | | Total Tax Provision | 170,007 | 177,997 | 168,307 | | Net Income | 433,770 | 432,927 | 429,951 | | | Retained Earnings, Beginning of Year | 8,859,801 | 8,426,874 | 7,996,923 | | | Retained Earnings, End of Year (Exhibit A) | | $ 9,293,571 | $ 8,859,801 | $ 8,426,874 |
| 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, |
| 2024 | 2023 | |||
| Accounts Receivable (Franchise Related) | $ 69,285 | $ 55,781 | ||
| Notes Receivable | 51,103 | 30,873 | ||
| Lease Receivable, Net of Unamortized Interest | - | 38,306 | ||
| 120,388 | 124,960 | |||
| Less: Allowance for Credit Losses | ( 51,103) | ( 28,873) | ||
| Total Receivables | 69,285 | 96,087 | ||
| Less: Current Portion | ( 69,285) | ( 92,576) | ||
| Long-Term Receivables | $ |
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the net cash provided by operating activities for the year 2024 was $484,811. This reflects the cash generated from the company's core business operations during that period.
For a prospective franchisee, this figure indicates the financial health and stability of Big Apple Bagels. A positive net cash flow from operating activities suggests that the company is effectively managing its revenues and expenses, and is capable of generating cash from its primary business activities. This can be a reassuring sign for franchisees considering investing in the brand.
It's important to note that this figure is just one component of the overall financial picture. Franchisees should also consider other factors such as net income, investing activities, and financing activities to get a comprehensive understanding of the company's financial performance. Additionally, it is advisable to consult with a financial advisor to interpret these figures in the context of their own investment goals and risk tolerance.