What was the net change in cash for Angry Chickz at the end of 2024?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
| \$ (8,336) | \$ (19,329) |
Angry Chickz Franchising, LLC
Statements of Cash Flows
December 31, 2024 and Period from June 9, 2023 (inception) to December 31, 2023
| 2024 | 2023 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | $ (436,260) | $ (219,329) |
| Net loss | ||
| Adjustments to reconcile net loss to net cash | ||
| from operating activities: | ||
| Amortization | 750 | - |
| Net change in assets and liabilities Receivables and other current assets Contract assets Accounts payable and accrued expenses Contract liability Due to Member | (8,507) (60,000) (24,850) 396,250 ,129 | - - 46,753 - 72,576 |
| Net cash provided by (used in) operating activities | 54,512 | (100,000) |
| CASH FLOWS FROM INVESTMENT ACTIVITIES | (4,421) | - |
| Purchases of property and equipment | ||
| CASH FLOWS FROM FINANCING ACTIVITIES Distribution to Member Contribution from Member | (42,747) - | - 200,000 |
| Net cash (used in) provided b |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Angry Chickz's 2025 Franchise Disclosure Document, the net change in cash for the period ending December 31, 2024, was $87,344. This indicates that Angry Chickz's cash position increased by this amount during the year. This figure is derived from the statement of cash flows, which tracks all cash inflows and outflows of the company. At the beginning of 2024, Angry Chickz had a cash balance of $100,000, which increased to $187,344 by the end of the year.
This increase in cash can be attributed to several factors, including cash flows from operating, investing, and financing activities. The statement of cash flows provides a breakdown of these activities, showing how each contributed to the overall change in cash. For instance, cash flows from operating activities reflect the cash generated or used by the company's core business operations, while cash flows from investing activities relate to the purchase and sale of long-term assets. Cash flows from financing activities involve transactions related to debt, equity, and dividends.
For a prospective Angry Chickz franchisee, understanding the company's cash flow dynamics is crucial. A positive net change in cash suggests that the company is managing its finances effectively and generating sufficient cash to cover its expenses and investments. However, it's important to examine the individual components of the cash flow statement to gain a deeper understanding of the underlying drivers of cash flow. For example, a significant portion of the increase in cash may be due to financing activities, such as contributions from the Member, rather than operating activities, which could indicate a reliance on external funding.
It is also important to note that these financial statements have been prepared without an audit. Prospective franchisees should be advised that no certified public accountant has audited these figures or expressed an opinion with regard to their content or form. Therefore, while the net change in cash provides a snapshot of the company's financial performance, it should be considered in conjunction with other financial metrics and qualitative factors when evaluating the franchise opportunity.