What was the cash at the end of the year for All Team in 2022?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
(16,373) | | (16,373) | | Balance at December 31, 2023 | $ 1,000 | $ 119,000 | $ | 712,933 | $ | 832,933 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 2022 | ||
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income | $ 201,944 | $ 224,177 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Allowance for credit losses | 5,501 | 6,000 |
| Changes in account balances: | ||
| Accounts receivable - trade | 1,387,458 | 34,529 |
| Prepaid expenses | (16,270) | 35 |
| Advances | (605,008) | (169,476) |
| Due from IRS | (49,780) | |
| Accounts payable-trade | 3,528 | - |
| Accrued expenses | (45,671) | 51,228 |
| Other funding liabilities | (326,541) | 818,817 |
| Total Adjustments | 353,217 | 741,133 |
| Total Cash Provided by Operating Activities | 555,161 | 965,310 |
| 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 | 15,371,492 | 21,942,195 |
| Principal payments on credit line payable | (15,758,708) | (22,540,407) |
| Principal payment on related party note | (30,000) | - |
| Stockholder distributions | (16,373) | (8,392) |
| Total Cash Used in Financing Activities | (433,589) | (606,604) |
| NET INCREASE IN CASH | 121,572 | 358,706 |
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 2022 was $894,307. This figure represents the total amount of cash All Team had on hand as of December 31, 2022, after accounting for all cash inflows and outflows during that year. This number is derived from the company's statement of cash flows, which provides a detailed overview of how All Team generated and used cash during the year.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests that All Team is managing its finances effectively and has sufficient liquidity to meet its short-term obligations. This can be an indicator of the overall financial stability of the franchise system. A strong cash position can enable All Team to invest in new initiatives, support franchisees, and weather unexpected economic downturns.
However, it's important to consider this figure in the context of All Team's overall financial performance. While a high cash balance is generally positive, it doesn't tell the whole story. A prospective franchisee should also review All Team's revenue, expenses, profits, and debt levels to get a comprehensive understanding of its financial health. Additionally, it's advisable to compare All Team's cash position to that of other franchise systems in the same industry to benchmark its performance.
Ultimately, the cash balance at the end of 2022 provides a snapshot of All Team's financial health at a specific point in time. While it's a useful data point, prospective franchisees should conduct thorough due diligence and consult with financial advisors to assess the overall financial viability of the franchise opportunity.