What was the net cash provided by operating activities for Browns Chicken in 2022?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
$ 92,955 | 11.77 | | BROWN'S CHICKEN LLC | | | | |
BROWN'S CHIKEN, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net Earnings | $ | 92,304 | $ 139,135 |
| Adjustments to Reconcile Net Earnings to Net | |||
| Cash Flows Provided (Used) By Operating Activities: | |||
| Non-Cash Items | |||
| Allowance for Bad Debts | - | - | |
| Depreciation and Amortization | 11,713 | 26,333 | |
| Loss on Disposal of Fixed Assets | - | - | |
| (Increase) Decrease in | |||
| Accounts Receivable | (2,690) | 12,661 | |
| Uniform & Equipment Inventories | (595) | (2,018) | |
| Prepaid Expenses | (4,798) | (834) | |
| Increase (Decrease) in | |||
| Accounts Payable | 7,171 | (47,999) | |
| Accrued Payroll | 69 | 171 | |
| Accrued Expenses | - | (49,622) | |
| Deferred Revenue | - | - | |
| Total Adjustments | 10,870 | (61,308) | |
| Net Cash Provided (Used) By Operating Activities | 103,174 | 77,827 | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Proceeds From the Disposal of Other Assets | - | - | |
| Payments Received on Loans to Franchisees | - | - | |
| Purchase of Property and Equpment | (10,664) | (34,933) | |
| Due From Related Party | - | - | |
| Net Cash Provided (Used) By Investing Activities | (10,664) | (34,933) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Payments on Notes Payable | (4,446) | (5,676) | |
| Distributions to Members | (48,000) | (78,000) | |
| Net Cash (Used) By Financing Activities | (52,446) | (83,676) | |
| Net Incre |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $77,827. This figure represents the cash flow generated from the company's core business operations during that year.
To arrive at this number, Browns Chicken started with its net earnings of $139,135 and then made several adjustments to reconcile net earnings to net cash flows. These adjustments included non-cash items such as depreciation and amortization, which added back $26,333, and changes in various asset and liability accounts. For instance, there was an increase in accounts receivable of $12,661, a decrease in uniform and equipment inventories of $2,018, and a decrease in prepaid expenses of $834. Additionally, there were changes in liabilities, such as a decrease in accounts payable of $47,999, an increase in accrued payroll of $171, and a decrease in accrued expenses of $49,622.
The total of these adjustments amounted to a decrease of $61,308. When this adjustment is combined with the net earnings of $139,135, it results in the net cash provided by operating activities of $77,827 for Browns Chicken in 2022. This metric is a key indicator of the company's financial health, showing its ability to generate cash from its operations, which can then be used for investments, debt repayment, or other business activities.