What was the total cash provided by operating activities for All Team in 2023?
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 total cash provided by operating activities in 2023 was $555,161. This figure reflects the net cash flow generated from All Team's core business operations during that year. It's an important indicator of the company's ability to generate cash from its ongoing activities, which can then be used to fund investments, pay debts, and cover operating expenses.
Specifically, this number is derived by starting with All Team's net income of $201,944 and then adjusting it for non-cash items and changes in working capital accounts. These adjustments include items such as allowance for credit losses ($5,501), changes in accounts receivable ($1,387,458), prepaid expenses ($-16,270), advances ($-605,008), due from IRS ($-49,780), accounts payable ($3,528), accrued expenses ($-45,671), and other funding liabilities ($-326,541). The total of these adjustments was $353,217, which when added to the net income, results in the total cash provided by operating activities.
For a prospective All Team franchisee, this figure is relevant because it provides insight into the financial health and stability of the franchisor. A positive cash flow from operating activities suggests that All Team is effectively managing its business and generating sufficient cash to sustain its operations. However, it's essential to consider this figure in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of All Team's financial performance. Franchisees should also compare this figure to previous years to identify any trends or potential issues.