What was the change in accounts receivable, supplies inventory, and other assets for C12 Group in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
1, 2022 | 1,843,880 | | Net income | 1,125,446 | | Distributions | (280,216) | | Balance at December 31, 2023 | $ 2,689,110 | THE C12 GROUP, LLC Statements of Cash Flows Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Operating Activities | 8 | |
| Net income | $ 1,125,446 | $ 640,867 |
| Adjustments to reconcile net income to net | ||
| cash provided by operating activities: | ||
| Depreciation | 10,877 | 79,368 |
| Amortization | 104,441 | 22,103 |
| Gain from sale of subsidiary | (276,066) | ~ |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (56,496) | (84,865) |
| Supplies inventory | (40,497) | (63,920) |
| Prepaid expenses | (386) | 12,669 |
| Operating lease right-of-use asset | 139,987 | 124,177 |
| Accounts payable | (32,396) | 51,858 |
| Accrued expenses | (40,024) | (1,643) |
| Operating lease righ-of-use liability | (129,948) | (131,509) |
| Other assets | (3,669) | |
| Unearned revenue | (675,786) | 815,784 |
| Net cash provided by operating activities | 125,483 | 1,464,889 |
| Investing Activities | ||
| Purchases of property and equipment | (168,879) | (102,668) |
| Repayments on related party note receivable | 231,605 | |
| Net cash provided (used) by investing activities | 62,726 | (102,668) |
| Financing Activities | ||
| Distributions | (280,216) | (109,518) |
| Net cash (used) by financing activities | (280,216) | (109,518) |
| Change in cash and cash equivalents | (92,007) | 1,252,703 |
| Cash and cash equivalents at beginning of year | 1,933,369 | 680,666 |
| Ca |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the changes in operating assets in 2022 included a decrease in accounts receivable of $84,865 and a decrease in supplies inventory of $63,920. The category of 'other assets' saw no change listed in the provided table. These figures reflect the changes in C12 Group's assets as part of its operating activities during that year.
These changes are part of the normal financial fluctuations that a business like C12 Group experiences. Accounts receivable changes could be due to variations in payment timings from franchisees or clients. Supplies inventory changes likely reflect the amount of materials C12 Group used or distributed during its operations.
For a prospective franchisee, understanding these changes can provide insight into the financial dynamics of C12 Group. While these numbers are specific to the franchisor's operations, they can indicate trends in how the company manages its assets and cash flow, which indirectly affects the support and resources available to franchisees. It is important to note that these are consolidated figures and may not directly reflect the financial performance of an individual franchise location.
It is also important to note that the table lists changes in operating assets and liabilities, not the total value of those assets. The total value of these assets can be found in another table within the FDD.