What was the cash balance at the beginning of the year for All Team on December 31, 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 667,144 | $ | 787,144 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ (43,528) | $ 201,944 | |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Allowance for credit losses | 6,000 | 5,501 | |
| Changes in account balances: | |||
| Accounts receivable - trade | 479,748 | 1,387,458 | |
| Prepaid expenses | (61,295) | (16,270) | |
| Advances | (434,801) | (605,008) | |
| Due from IRS | 49,780 | (49,780) | |
| Accounts payable-trade | (882) | 3,528 | |
| Accrued expenses | (107,077) | (45,671) | |
| Other funding liabilities | 213,416 | (326,541) | |
| Total Adjustments | 144,889 | 353,217 | |
| Total Cash Provided by Operating Activities | 101,361 | 555,161 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Payments on note receivable - franchises | - | - | |
| Total Cash Provided by Investing Activities | - | - | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from credit line payable | 9,972,228 | 15,371,492 | |
| Principal payments on credit line payable | (10,433,329) | (15,758,708) | |
| Principal payment on related party note | (24,606) | (30,000) | |
| Stockholder distributions | (2,261) | (16,373) | |
| Total Cash Used in Financing Activities | (487,968) | (433,589) | |
| NET IN |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the cash balance at the beginning of the year, specifically on December 31, 2023, was $1,015,879. This figure represents the amount of cash All Team had on hand as it entered the 2024 fiscal year. This is an important indicator of the company's financial health and liquidity at the start of the year.
For a prospective franchisee, understanding the franchisor's beginning cash balance can provide insights into their financial stability. A healthy cash balance suggests that All Team has sufficient resources to meet its short-term obligations and invest in growth opportunities. However, it's also important to consider how this cash balance has changed over time and the factors that contributed to any increases or decreases.
By comparing the beginning cash balance to the ending cash balance for 2024, which was $629,272, it's evident that All Team experienced a decrease in cash during the year. Further analysis of the statements of cash flows would be necessary to determine the reasons for this decrease, such as operating losses, investments in new assets, or debt repayments. A prospective franchisee should investigate these factors to assess the potential risks and opportunities associated with investing in an All Team franchise.