What was the net change in cash and cash equivalents for Afuri Ramen Dumpling?
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 | MATION | |||
| Cash paid for interest | $ | 2,004 | s | |
| Appen barra on market | 2,000 | _ |
AFURI FRANCHISE, INC. NOTES TO FINANCIAL STATEMENTS
December 31, 2021 and 2020
NOTE 1. NATURE OF BUSINESS
Afuri Franchise, Inc. (the Company), was incorporated in Oregon on July 10, 2017. The Company is in the business of offering franchise opportunities for "Afuri Ramen + Dumpling" and "Afuri Izakaya" restaurants. Named after the Japanese mountain, Afuri's signature ramen is made with yuzu, a small yellow citrus fruit native to Asia and splashed with fresh chicken broth which pairs perfectly with charcoal-grilled pork.
The Company had three and two operating franchise restaurants in the United States at December 31, 2021 and 2020, respectively. The Company had agreements for six additional restaurants in the United States at December 31, 2021.
The Company had four operating franchise restaurants outside of the United States at December 31, 2021 and 2020. The Company had agreements for twelve additional restaurants outside of the United States at December 31, 2021.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of the major accounting policies of the Company is presented to assist the reader in evaluating the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.
Foreign transactions – Transactions outside the United States include agreements with franchisees in Canada, Singapore, and Hong Kong. Foreign transactions are subject to risks inherent in transacting under different legal systems and various political and economic environments. Among the risks are changes in existing tax laws, possible limitations on foreign investment and income repatriation, government price or foreign exchange controls, and restrictions on currency exchange. The functional currency of all of the Company's foreign transactions is US dollars.
Cash and cash equivalents – For purposes of the statement of cash flows, the Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains its cash in bank accounts, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.
Accounts receivable – Accounts receivable from franchisees are generally unsecured. Management charges a 5% late fee and 1.5% interest per month on unpaid balances.
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 change in cash and cash equivalents was $459,015 in 2021 and $12,769 in 2022. In 2020, the net change in cash and cash equivalents was a loss of $291,267.
For a prospective franchisee, this data provides insight into the company's cash flow management and overall financial health. A positive net change indicates that the company increased its cash reserves during the year, while a negative change suggests the opposite. Reviewing these figures over multiple years can reveal trends and potential areas of concern or strength.
It's important to consider the factors contributing to these changes, such as operating activities, investing activities, and financing activities, which are detailed in the cash flow statements. Understanding these factors can help a franchisee assess the sustainability of Afuri Ramen Dumpling's financial performance and its ability to support its franchisees.