What was the cash paid for interest by City Publications in 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ANCE, DECEMBER 31, 2023 | 1,000 | | 17,000 | (1,849,093) | 1,745,483 | (85,610) | | | | | | | Advances from (to) affiliates | - | | - | (145,012) | - | (145,012) | | | | | | | Capital (distributions) | - | | - | - | (107,323) | (107,323) | | | | | | | Net income | - | | - | - | 263,947 | 263,947 | | | | | | | BALANCE, DECEMBER 31, 2024 | $ 1,000 | $ | 17,000 | $ (1,994,105) | $ 1,902,107 | $ (73,998) | | | | | |
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
| FOR THE YEARS ENDED DECEMBER 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net (loss) income | $ | 263,947 | $ | 99,503 | $ | (13,838) | |
| Adjustments to reconcile net income to net | |||||||
| cash provided by operating activities: | |||||||
| Depreciation expense | 3,000 | 3,000 | 3,000 | ||||
| Recognition of non-refundable deferred franchise fees | (34,253) | (22,373) | (16,313) | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | 4,018 | (10,184) | 36,271 | ||||
| Other assets | - | 38 | - | ||||
| Accounts payable | 393,943 | (22,064) | (7,299) | ||||
| Non-refundable deferred franchise fees | 59,400 | 30,300 | 23,365 | ||||
| Net cash provided by operating activities | 690,055 | 78,220 | 25,186 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchase of property and equipment | (2,179) | - | - | ||||
| Net cash (used) by investing activities | (2,179) | - | - | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Advances to affiliates | (145,012) | (67,140) | (50,894) | ||||
| C |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the cash paid for interest in 2023 was $414. This figure is part of the Consolidated Statements of Cash Flows, which provides a summary of the company's financial activities over the past three years. The statement includes cash flows from operating, investing, and financing activities, offering insight into how City Publications generates and uses cash.
For a prospective franchisee, understanding the cash flow statements is crucial. It shows how much cash City Publications used for interest payments, which can be indicative of the company's debt obligations and financial health. Lower interest payments might suggest less reliance on debt, while higher payments could indicate greater financial leverage.
Supplemental disclosures within the statement also reveal cash paid for taxes, though in this case, the amount is $0 for 2022, 2023 and 2024. Reviewing these figures over several years helps potential franchisees assess the financial stability and practices of City Publications, allowing them to make a more informed investment decision.