What was the net change in cash from operating activities for Floors To Go in 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
redit losses | | 52,720 | | 35,724 | | Travel, meals and entertainment | | 33,996 | | 49,481 | | General office | | 623 | | 6,328 | | Total operating expenses | | 1,637,084 | | 1,617,390 | | Net income | | 1,517,901 | | 1,709,639 | | Member's equity, beginning of year | | 549,866 | | 1,259,440 | | Member distributions | | (1,367,895) | | (2,419,213) | | Member's equity, end of year | $ 699,872 $ 549,866 | | | |
Statements of Cash Flows
| Year Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Cash flows from operating activities | ||||
| Net income | $ | 1,517,901 | $ | 1,709,639 |
| Adjustments to reconcile net income to net cash | ||||
| from operating activities | ||||
| Credit losses | 52,720 | 35,724 | ||
| Changes in operating assets and liabilities | ||||
| which (used) provided cash | ||||
| Accounts receivable | (62,626) | (113,736) | ||
| Prepaid expenses | 714 | - | ||
| Accounts payable | (8,963) | (5,267) | ||
| Deferred reve |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the net change in cash from operating activities in 2023 was $1,551,781. This figure represents the net cash provided by the company's core business operations during that year. It's calculated by adjusting net income to account for non-cash items, changes in working capital, and other operating activities.
Specifically, the net income for Floors To Go in 2023 was $1,709,639. This was then adjusted by adding back credit losses of $35,724 and accounting for changes in operating assets and liabilities, such as accounts receivable decreasing by $113,736, prepaid expenses remaining at $0, accounts payable decreasing by $5,267, a decrease in amounts due to franchisees for the cashback program of $90,896, a decrease in deferred revenue of $17,352, and an increase in accrued expenses of $33,669.
For a prospective franchisee, this indicates the financial health and stability of Floors To Go. A positive net change in cash from operating activities suggests that the company is generating sufficient cash flow from its business to cover its operating expenses and potentially invest in future growth. It is important to note that while this figure is positive, member distributions accounted for $2,419,213 in cash flows used for financing activities, resulting in a net decrease in cash of $867,432 for the year. This information is useful for a potential franchisee to understand the overall cash flow dynamics of Floors To Go.