What was the end of year cash balance for Aw in 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Members' Equity (Deficit) - Ending | $ 617 | $ 11,732 | | |
STATEMENTS OF CASH FLOWS RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | |||||
|---|---|---|---|---|---|
| Cash Flows from Operating Activities | 2023 | 2022 | |||
| Net Income | $ | 136,397 | $ | 168,681 | |
| Adjustments to reconcile net income to net cash | |||||
| provided by operating activities: | |||||
| Changes in assets and liabilities | |||||
| Due from franchisee | (6,611) | 1,294 | |||
| Due from related parties | — | — | |||
| Accounts payable and accrued expenses | (4,834) | (634) | |||
| Contract Liability | (8,250) 116,702 | (8,250) 161,091 | |||
| Cash Flow from Financing Activities | |||||
| Loan from SBA | 1,954 | — | |||
| Loan from WinTrust | — | 25,624 | |||
| Payments to WinTrust | — | (15,551) | |||
| Cash Flow from Investing Activities | |||||
| Members' (distributions) | (147,512) | (146,636) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the end of year cash balance for 2023 was $4,705. This figure represents the amount of cash Aw had on hand at the close of business on December 31, 2023. This number is derived from the financial statements, which have been audited by Muhammad Zubairy, CPA PC.
For a prospective franchisee, the end-of-year cash balance provides a snapshot of Aw's financial health and liquidity. A higher cash balance generally indicates a stronger ability to meet short-term obligations and invest in future growth. However, it's essential to consider this figure in conjunction with other financial metrics, such as revenues, expenses, and liabilities, to gain a comprehensive understanding of Aw's financial performance.
It's also worth noting that the cash balance can fluctuate throughout the year due to various factors, including seasonal sales patterns, investments, and financing activities. Therefore, while the end-of-year cash balance provides a useful benchmark, it's important to consider the overall trend in cash flow and the factors that influence it. Reviewing the statements of cash flows for both 2023 and 2022 can provide additional context, as can comparing these figures to those of other similar franchises.