What was the net cash provided by operating activities for Canopy Lawn Care in 2023?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
TATEMENTS OF CASH FLOWS FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 20,459,018 | $ 9,920,680 | $ 6,089,513 |
| Adjustments to reconcile net income | |||
| to net cash provided by operating activities: | |||
| Bad debt expense | 300,531 | 59,046 | 82,201 |
| Depreciation and amortization | 10,773,355 | 7,910,727 | 5,494,567 |
| Lease expense | 940,945 | 519,344 | - |
| Operating lease payments | (657,754) | (265,181) | - |
| Changes in assets and liabilities: | (0.000.10=) | (=00.000) | (0.044.045) |
| Royalties and accounts receivable | (2,099,495) | (729,389) | (2,044,615) |
| Rebates receivable | (73,676) | (1,815,484) | (47.454) |
| Notes receivable | (403,653) | 113,076 | (17,454) |
| Inventory Prepaid expenses and other assets | (246,248) | (1,043,705) | (122,300) |
| 1,348,125 | 192,280 | (976,687) | |
| Accounts payable and accrued expenses | 153,274 | 2,121,617 | 925,000 |
| Deferred revenues on franchise sales | (1,253,452) , , , , | (824,331) | 1,337,600 |
| Customer deposits | (502,153) | 706,594 | (306,386) |
| Ne |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the net cash provided by operating activities for the company in 2023 was $16,865,274. This figure represents the cash generated from the company's normal business operations during that year, after accounting for various adjustments to net income. These adjustments include items such as depreciation and amortization, changes in assets and liabilities like royalties and accounts receivable, and other non-cash transactions.
For a prospective Canopy Lawn Care franchisee, this number indicates the financial health and operational efficiency of the franchisor. A higher net cash flow from operating activities suggests that the company is effectively managing its resources and generating sufficient cash to cover its expenses and invest in future growth. This can be a positive sign for franchisees, as it implies that the franchisor has a stable financial foundation and is capable of providing ongoing support and resources to its franchisees.
It's important to note that this figure is part of a larger financial statement and should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of Canopy Lawn Care's financial performance. Additionally, the FDD mentions that the 2023 figures were "as restated," which means that there may have been adjustments made to the original financial statements. Prospective franchisees should inquire about the reasons for these restatements and any potential impact on the company's financial position.