What was the net cash provided by operating activities for Bor Restoration in 2020?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ative expenses | 592,756 | 263,246 | 108,423 | | Marketing expenses | 23,702 | 4 | 4,155 | | Total Operating Expenses | 834,562 | 520,649 | 251,820 | | NET INCOME | $ 386,160 | $ 420,082 | $ 291,217 |
| Beginning owners' equity | $ 304,641 | $ | 220,953 | $ 244,736 |
|---|---|---|---|---|
| Net contributions (distributions) | (52,004) | (336,394) | (315,000) | |
| Net income | 386,160 | 420,082 | 291,217 | |
| ENDING OWNERS' EQUITY | $ 638,797 | $ | 304,641 | $ 220,953 |
| 2022 | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | |||||
| Net income | $ | 386,160 | $ | 420,082 | $ 291,217 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||
| Amortization | 2,738 | ||||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (33,624) | (25,761) | (10,293) | ||
| Prepaid expenses | 117,025 | (119,713) | |||
| Other assets | (14,028) | (10,205) | (8,013) | ||
| Accounts payable | 466 | (5,476) |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the net cash provided by operating activities in 2020 was $283,629. This figure reflects the cash generated from the company's core business operations during that year.
Net cash provided by operating activities is a key indicator of a company's financial health. It shows the amount of cash a company is able to generate from its normal business operations, which is essential for covering operating expenses, investing in growth, and paying off debts. A positive number, such as the $283,629 reported for Bor Restoration in 2020, generally indicates that the company's operations are a reliable source of cash.
Prospective franchisees should pay close attention to this metric as it provides insight into the stability and sustainability of the franchisor's business model. Reviewing trends in net cash provided by operating activities over several years can offer a more comprehensive understanding of the franchisor's financial performance and its ability to support its franchisees.