What was the amount of cash and cash equivalents for Beard Papas in 2023?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2023 and 2022
| Date | Print Name | Signature | |---|---|---| | | | | (A Wholly-Owned Subsidiary of Nagatanien Holdings Co., Ltd.)
Statements of Cash Flows
Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income (loss) $ | 79,942 | $ (55,963) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) | ||
| operating activities: | ||
| Depreciation and amortization | 4,176 | 6,189 |
| Non-cash lease expenses | 93,795 | 154 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 175,158 | (151,953) |
| Due from affiliates | 6,689 | (2,892) |
| Inventories | (185,525) | 7,868 |
| Prepaid expenses and other current assets | (2,293) | 61,791 |
| Accounts payable | 211,246 | 6,054 |
| Due to affiliates | (25,428) | 16,087 |
| Accrued expense and other current liabilities | 130,673 | 3,494 |
| Deposit payable | (15,000) | - |
| Lease liability | (70,271) | (1,973) |
| Net cash provided by (used in) operating activities | 403,162 | (111,144) |
| Cash flows from investing activity: | ||
| Purchases of property and equipment | (434, 139) | |
| Security deposits | - | (13,048) |
| Net cash used in investing activity | (434,139) | (13,048) |
| Net decrease in cash and cash equivalents | (30,977) | (124,192) |
| 1 v |
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, the company's cash and cash equivalents at the end of the year 2023 were $1,194,859. This figure represents the total amount of readily available funds that Beard Papas had at its disposal to cover immediate obligations and investments. This is an important indicator of the company's financial health and liquidity.
For a prospective franchisee, understanding the franchisor's cash position can provide insights into the stability and potential for growth of the franchise system. A healthy cash balance suggests that Beard Papas is well-positioned to support its franchisees, invest in marketing and development, and navigate economic challenges. Franchisees may want to compare this figure with previous years and industry benchmarks to assess the company's financial performance.
It's also worth noting that the FDD mentions that Beard Papas's cash and cash equivalents balances sometimes exceeded the FDIC limit. While the balances exceeded the limit by approximately $945,000 as of December 31, 2023, the company believes that the concentration of credit risk is limited because it places its cash and cash equivalents in accounts with three financial institutions that are participating members of the FDIC.