What was the net cash used by financing activities 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 net cash used by financing activities in 2021 was $(25,956). This indicates that Afuri Ramen Dumpling spent $25,956 more on financing activities than it generated during that year.
Financing activities typically include transactions related to debt, equity, and dividends. A negative value suggests that the company used more cash for repayments, distributions, or other financing-related expenses than it received from new financing sources.
For a prospective franchisee, this information provides insight into how Afuri Ramen Dumpling manages its finances and could be a point of discussion to understand the specifics of these financing activities and their implications for the company's financial health and stability. It's essential to consider this figure in conjunction with other financial data to get a comprehensive understanding of the company's financial performance.