According to All Team's 2025 Franchise Disclosure Document, the Statements of Cash Flows provide a summary of the company's cash inflows and outflows during a specific period, categorized by operating, investing, and financing activities. For a prospective franchisee, this statement offers insights into how All Team manages its cash, where its cash is coming from, and where it is being spent. This can be a valuable tool in assessing the financial stability and operational efficiency of the franchisor.

The cash flow statement starts with the net income (or loss) and adjusts it for non-cash items and changes in balance sheet accounts to arrive at the net cash provided by operating activities. For example, in 2024, All Team had a net loss of $43,528, but after adjustments, the total cash provided by operating activities was $101,361. These adjustments include items like allowance for credit losses ($6,000), changes in accounts receivable ($479,748), and prepaid expenses ($-61,295). These figures show how the company's accounting practices impact its cash position.

The cash flow from investing activities typically involves the purchase and sale of long-term assets, while cash flow from financing activities includes transactions related to debt, equity, and dividends. In All Team's case, for the year 2024, there were no cash flows from investing activities. The cash flows from financing activities show significant activity with proceeds from a credit line payable of $9,972,228 and principal payments on the credit line payable of $10,433,329. This level of detail can help a franchisee understand how All Team manages its debt and equity.

Overall, the Statements of Cash Flows allow potential franchisees to evaluate All Team's ability to generate cash, meet its obligations, and fund its investments. By reviewing these statements, a franchisee can gain a better understanding of the financial health and sustainability of the All Team franchise system.