What was the cash balance at the end 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 end of the year on December 31, 2024, was $629,272. This figure represents the total cash All Team had on hand at the close of its fiscal year. This number is derived from the statement of cash flows, which reconciles net income to net cash.
For a prospective franchisee, this cash balance can be an indicator of All Team's financial health and stability. A healthy cash balance suggests that All Team has sufficient liquid assets to meet its short-term obligations and invest in future growth. However, it is important to consider this figure in conjunction with other financial metrics, such as revenues, expenses, and liabilities, to get a complete picture of All Team's financial condition.
It's also worth noting that the cash balance decreased from the previous year. On December 31, 2023, All Team had a cash balance of $1,015,879. The decrease of $386,607 year over year should be examined further to understand the reasons for the change. A potential franchisee should inquire about the factors contributing to this decrease, such as increased operating expenses, investments in new initiatives, or changes in financing activities. Understanding these factors will help a franchisee assess the financial risks and opportunities associated with investing in an All Team franchise.