What was the net cash provided by operating activities for City Publications in 2024?
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 for the company in 2024 was $690,055. This figure represents the cash generated from the company's normal business operations during that year. It's a key indicator of City Publications' ability to fund its operations, make investments, and meet its financial obligations.
The FDD also provides a breakdown of how this figure was derived. It starts with a net income of $263,947 and then makes several adjustments to reconcile net income to net cash provided by operating activities. These adjustments include depreciation expense ($3,000), recognition of non-refundable deferred franchise fees ($-34,253), changes in assets and liabilities such as accounts receivable ($4,018), accounts payable ($393,943), and non-refundable deferred franchise fees ($59,400).
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It offers insight into the financial health and stability of City Publications. A consistently positive and growing net cash flow from operations suggests that the company is effectively managing its resources and generating sufficient cash to sustain and expand its business. This can be a reassuring factor for potential franchisees considering investing in the City Publications brand.
It is also useful to compare this figure with previous years. In 2023, the net cash provided by operating activities was $78,220, and in 2022, it was $25,186. The significant increase in 2024 indicates a positive trend in the company's operational performance. However, prospective franchisees should investigate the reasons behind these fluctuations to gain a comprehensive understanding of the company's financial dynamics.