What was the net cash used by operating activities for All States M.E.D.?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
121,914 |
Statement of Operations and Members' Equity
For the Period from July 11, 2023("Commencement of operations") to December 31, 2023
| Franchise sales | $ - | |--------------------------------------|----------------| | | - | | Total revenues | - | | Expenses: | | | Bank fees | 87 | | Marketing expense | 499 | | Total expenses | 586 | | Net income (loss) | (586) | | Contributions | 122,500 | | Members' Equity, beginning of period | - - | | Members' Equity, end of period | $ 121,914- |
Statement of Cas
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the net cash used by operating activities was $(586). This figure indicates the extent to which All States M.E.D. used cash in its core business operations during the period specified in the financial statements.
For a prospective franchisee, this is a crucial metric to consider. A negative value suggests that the company's operational activities consumed more cash than they generated. This could be due to various factors, such as initial setup costs, marketing expenses, or other investments necessary to establish the franchise system.
It's important to note that this figure is based on the financial statements as of a specific date (December 31, 2023) and for the period from July 11, 2023 (commencement of operations) to December 31, 2023. Therefore, it represents a snapshot of the company's financial performance during its early stages. A potential franchisee should investigate further to understand the reasons behind the negative cash flow and whether it is expected to improve as the franchise system matures.