What was the net cash provided by operating activities for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
CIT), BEGINNING | (444,760) | | DISTRIBUTIONS | (534,732) | | RETAINED EARNINGS, ENDING | $ 554,725 |
CLOSETS UNLIMITED OF NEW JERSEY, INC. STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022
| Income from operations | $ 1,534,217 |
|---|---|
| Adjustments to reconcile net income to net cash provided | |
| by operating activities | |
| Depreciation and amortization | 83,985 |
| Non‐cash lease expense | 1,309 |
| (Increase) decrease in current assets | |
| Accounts receivable | (47,745) |
| Note receivable | (37,486) |
| Inventory | (4,794) |
| Employee retention tax credit receivable | (622,869) |
| Prepaid expenses and other current assets | ( |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the net cash provided by operating activities was $959,730. This figure represents the cash generated from the company's core business operations during the specified period. It is a key indicator of the company's ability to fund its operations, make investments, and meet its debt obligations.
For a prospective Closet Storage Concepts franchisee, understanding the net cash provided by operating activities is crucial. A higher positive number suggests that the company is efficient in generating cash from its operations, which can translate to better support and resources for franchisees. It indicates financial stability and the potential for growth within the franchise system.
However, it's important to consider this figure in conjunction with other financial metrics. For instance, the FDD also lists adjustments to reconcile net income to net cash provided by operating activities, including depreciation and amortization ($83,985), non-cash lease expense ($1,309), and changes in assets and liabilities such as accounts receivable ($-47,745) and accounts payable ($63,084). These adjustments provide a more detailed picture of the company's cash flow dynamics.
Therefore, while the net cash provided by operating activities offers a snapshot of Closet Storage Concepts' financial health, prospective franchisees should review the entire financial statement and consult with a financial advisor to fully assess the risks and opportunities associated with investing in a Closet Storage Concepts franchise.