What was the cash and cash equivalents at the beginning of the year for Afuri Ramen Dumpling in 2020?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| ACCUMULATED DEFICIT, end of year | $ | (14,524) | $ | (29,243) |
| 2021 2020 | 2020 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATIONS | 7.7 | 100000 | ||
| Net income (loss) | $ | 14,719 | $ | (14,076) |
| Adjustments to reconcile net loss to net cash flows | ||||
| provided by operating activities | ||||
| Depreciation | 1,506 | 376 | ||
| Capital contributions | 98,000 | |||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (26,442) | 631 | ||
| Prepaid expenses | 5,236 | (9,720) | ||
| Unbilled receivables | 21,283 | |||
| Accounts payable | (14,890) | 11,057 | ||
| Credit cards payable | (1,628) | (27,288) | ||
| Due to franchisees, gift cards | 6,828 | 1,165 | ||
| Deferred revenue | 198,561 | (30,654) | ||
| Net cash provided by operating activities | 183,890 | = | 50,774 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchases of property and equipment | 1 4 | 820 | ||
| Purchase of intangible asset | (25,956) | (24,540) | ||
| Net cash used by financing activities | (25,956) | (23,720) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Proceeds and collections from parent | 679,652 | 100 | ||
| Advances and repayments to parent | (298,571) | (318,321) | ||
| Payments on note payable to related party | (80,000) | 13.1-1-00-0 | ||
| 7 - 7 - 7 - 7 - 7 - 7 - 7 - 7 - 7 - 7 - | - | 301,081 | (318,321) | |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 459,015 | (291,267) | ||
| CASH AND CASH EQUIVALENTS, beginning of year | 467,067 | _ | 758,334 | |
| CASH AND CASH EQUIVALENTS, end of year | $ | 926,082 | $ | 467,067 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORM | MATIO |
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2020 was $758,334. This indicates the amount of liquid assets Afuri Ramen Dumpling had readily available to cover immediate obligations and expenses at the start of that year.
For a prospective franchisee, this figure provides insight into the financial health and liquidity of Afuri Ramen Dumpling at that time. A higher cash and cash equivalents balance generally suggests a stronger ability to meet short-term liabilities and invest in growth opportunities.
However, it is important to consider this figure in conjunction with other financial metrics and trends to gain a comprehensive understanding of Afuri Ramen Dumpling's overall financial performance and stability. Reviewing subsequent years' financial statements would provide a more complete picture of the company's financial trajectory.