What was the net cash provided by operating activities for City Publications in 2022?
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 net cash provided by operating activities in 2022 was $25,186. This figure represents the cash flow generated from the company's core business operations, reflecting the net result of revenues, expenses, and changes in working capital accounts during that year. It's a key indicator of City Publications' ability to fund its operations and growth through its primary business activities.
Specifically, the net cash provided by operating activities is calculated by starting with the net loss of $(13,838) and adjusting it for non-cash items such as depreciation expense ($3,000) and the recognition of non-refundable deferred franchise fees ($(16,313)). It also accounts for changes in assets and liabilities, including accounts receivable ($36,271), accounts payable ($(7,299)), and non-refundable deferred franchise fees ($23,365). These adjustments convert the net loss into a cash flow figure that more accurately reflects the cash generated or used by the business.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial as it indicates the financial health and stability of City Publications. A positive cash flow from operations suggests that the company is generating enough cash to cover its operating expenses and potentially invest in future growth. Conversely, a negative cash flow could signal financial challenges and the need for external funding. Reviewing these figures over several years, as presented in the FDD, provides a more comprehensive view of the company's financial performance and trends.
It is important to note that while the FDD provides historical financial data, past performance is not necessarily indicative of future results. Prospective franchisees should conduct their own due diligence and consult with financial advisors to assess the potential risks and rewards of investing in a City Publications franchise.