What was the net increase (decrease) in cash 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 increase (decrease) in cash for the company in 2022 was a decrease of $11,870. This indicates that City Publications used more cash than it generated during that year. This figure is derived from the consolidated statement of cash flows, which provides a comprehensive overview of all cash inflows and outflows.
Specifically, the statement of cash flows categorizes cash activities into three main areas: operating activities, investing activities, and financing activities. In 2022, City Publications' operating activities provided $25,186 in cash, while investing activities used no cash, and financing activities used $37,056. The net effect of these activities resulted in the overall decrease in cash of $11,870.
For a prospective franchisee, this information is valuable as it provides insight into the financial health and cash management of City Publications. A decrease in cash could be a concern if it indicates financial instability or poor management of resources. However, it is essential to consider this figure in the context of the company's overall financial performance and industry trends. Further analysis of the complete financial statements and discussions with the franchisor are recommended to fully understand the implications of this cash decrease.