What was the cash and cash equivalents at the end of the year for Afuri Ramen Dumpling in 2021?
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 end of the year 2021 was $926,082. The FDD also provides the cash and cash equivalents at the beginning of the year 2021, which was $467,067.
It is important to note that cash and cash equivalents include highly liquid investments with original maturities of three months or less. This means that the company considers assets that can be quickly converted to cash as part of their cash reserves.
Analyzing the changes in cash and cash equivalents can provide insights into Afuri Ramen Dumpling's financial health and its ability to meet short-term obligations. A prospective franchisee may want to further investigate the reasons behind the increase in cash and cash equivalents during 2021 to better understand the company's financial performance and stability.