What was the total cash used in financing activities for All Team in 2024?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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) |
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 used in financing activities in 2024 was $(487,968). This figure reflects the net effect of various financing activities on All Team's cash flow during that year. It is important to note that this is a negative value, indicating that All Team used more cash than it generated from financing activities.
Specifically, the cash used in financing activities includes proceeds from a credit line payable of $9,972,228, principal payments on a credit line payable of $(10,433,329), principal payment on a related party note of $(24,606), and stockholder distributions of $(2,261). The large principal payments on the credit line payable significantly contributed to the overall negative cash flow from financing activities.
A prospective All Team franchisee should carefully examine these cash flow statements to understand how All Team manages its debt and equity financing. Understanding these trends can provide insights into the financial stability and capital structure of the company, which can be crucial for assessing the overall risk and potential of investing in an All Team franchise.