What was the net cash provided by operating activities for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Class A | Class B | Capital | Earnings | Income (Loss) | Total | |
|---|---|---|---|---|---|---|
| Balance January 1, 2022 | $ 2,100 | $ 210,000 | $ 366,366 | $ 15,459,388 | $ (5,506) | $ 1 6,032,348 |
| Net income | - | - | - | 10,941,550 | - | 1 0,941,550 |
| Other comprehensive income | - | - | - | - | 26,999 | 26,999 |
| Distributions | - | - | - | ( 8,431,640) | - | (8,431,640) |
| Balance December 31, 2022 | 2,100 | 210,000 | 366,366 | 17,969,298 | 21,493 | 1 8,569,257 |
| Net income | - | - | - | 14,196,288 | - | 1 4,196,288 |
| Other comprehensive loss | - | - | - | - | (6,653) | (6,653) |
| Distributions | ||||||
| - | - | - | ( 21,712,635) | - | (21,712,635) | |
| Balance December 31, 2023 | ||||||
| 2,100 | 210,000 | 366,366 | 10,452,951 | 14,840 | 1 1,046,257 | |
| Net income | ||||||
| - | - | - | 19,161,078 | - | 1 9,161,078 | |
| Other comprehensive income | ||||||
| - | - | - | - | 39,507 | 39,507 | |
| Distributions | ||||||
| - | - | - | ( 16,582,517) | - | (16,582,517) | |
| Balance December 31, 2024 | $ 2,100 | $ 210,000 2024 | $ 366,366 2023 | $ 13,031,512 2022 | $ 54,347 | $ 1 3,664,325 |
| Operating Activities | ||||||
| Net income | $ 19,161,078 | $ 14,196,288 | $ 10,941,550 | |||
| Items not requiring (providing) cash | ||||||
| Depreciation | 999,912 | 1,063,068 | 1,095,919 | |||
| Bad debt expense | 160,526 | 54,103 | 13,153 | |||
| Noncash operating lease cost | 94,315 | 91,359 | 88,451 | |||
| Loss on abandonment of software subscription | 1,454,554 | - | - | |||
| Effect of foreign currency translation (gain) loss | 39,507 | (6,653) | 26,999 | |||
| Deferred compensation | 455,292 | 614,155 | - | |||
| Changes in | ||||||
| Accounts receivable | (838,659) | (645,018) | (691,842) | |||
| Deferred franchise costs and prepaid expenses | (319,698) | 46,486 | (241,676) | |||
| Inventory | 58,725 | (75) | (8,355) | |||
| Software subscription | (631,500) | (891,054) | - | |||
| Accounts payable | 3,969,091 | 2,603,540 | 3,211,061 | |||
| Accrued expenses | 920,639 | 113,353 | 363,757 | |||
| Operating lease liabilities | (182,963) | (180,007) | (177,099) | |||
| Deferred franchise revenue and other deferred income | 503,293 | 555,702 | 1,223,390 | |||
| Deferred compensation | (340,500) | (144,863) | 119,200 | |||
| Refundable advance | (1,618,485) | 2,041,208 | - | |||
| Net cash provided by operating activities | 23,885,127 | 19,511,592 | 15,964,508 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $15,964,508. This figure reflects the cash generated from the company's core business operations during that year.
For a prospective City Wide franchisee, understanding the net cash provided by operating activities is crucial as it indicates the financial health and stability of the franchisor. A strong and consistent positive cash flow from operations suggests that the company is effectively managing its resources and generating sufficient revenue to cover its expenses. This can be a reassuring factor for franchisees who are considering investing in the brand.
It's important to note that this figure is part of a larger set of financial statements, and a comprehensive analysis would involve examining other factors such as investing and financing activities, as well as the overall trends in revenue, expenses, and profitability. Prospective franchisees should consult with a financial advisor to fully understand the implications of these financial results and how they might impact their own investment.