What was the change in supplies inventory for C12 Group in 2023?
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 change in supplies inventory in 2023 was a decrease of $40,497. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities. In 2022, the change in supplies inventory was a decrease of $63,920.
This means that C12 Group used less of its supplies inventory in 2023 compared to 2022. For a franchisee, monitoring changes in supplies inventory can be important for managing cash flow and understanding operational efficiency. A decrease in supplies inventory could indicate better inventory management or a change in the level of business activity.
It's important to note that this change is part of a larger set of adjustments to net income to arrive at net cash flow. Other factors, such as changes in accounts receivable, prepaid expenses, and unearned revenue, also play a role in determining the overall cash flow from operating activities for C12 Group.