What was the amount of cash and cash equivalents at the beginning of 2023 for Bananas Smoothies Frozen Yogurt?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
9, 2024, DECEMBER 31, 2023, AND DECEMBER 25, 2022
| Members' equity - beginning | $ 353,015 | $ | 698,962 | $ | 418,985 | |-----------------------------|-----------------------|------------|-------------|-----|-------------| | Net income | 258,701 | | 254,053 | | 329,977 | | Distributions | (495,000 ) | _ | (600,000) | _ | (50,000) | | MEMBERS' EQUITY - ENDING | $ 116,716 | $ | 353,015 | $_ | 698,962 |
(A Limited Liability Company)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 29, 2024, DECEMBER 31, 2023, AND DECEMBER 25, 2022
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ | 258,701 | $ 254,053 | $ 329,977 |
| Adjustments to reconcile net income to net cash | ||||
| provided by operating activities: | ||||
| Bad debt expense | - | - | 10,522 | |
| Changes in operating assets and liabilities: | ||||
| Royalties and advertising receivable | 10 | 4,165 | (2,678) | |
| Franchise fees receivable | - | - | (2,200) | |
| Prepaid expenses | - | 11,692 | 17,139 | |
| Accounts payable and accrued expenses | (2,006) | (7,164) | 3,865 | |
| Due to |
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, Bananas Smoothies Frozen Yogurt had $873,345 in cash and cash equivalents at the beginning of 2023. This figure represents the company's readily available funds at the start of the year, which can be used for operational expenses, investments, or other business activities.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance indicates financial stability and the ability to support franchisees. It suggests that Bananas Smoothies Frozen Yogurt has sufficient resources to meet its obligations and invest in the growth of the franchise system.
However, it's important to note that this is just a snapshot in time. The cash position can fluctuate throughout the year due to various factors such as revenue, expenses, and investments. Therefore, a prospective franchisee should also review the company's cash flow statement to understand how cash is generated and used over a longer period. Additionally, it would be prudent to compare these figures with previous years to identify any trends or potential issues.