What was the amount of cash and cash equivalents at the beginning of the year 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 vot decrease in easif and easif equivalents | (30,977) | (124,192) |
| Cash and cash equivalents at beginning of year | 1,225,836 | 1,350,028 |
| Cash and cash equiva |
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 beginning of 2023 was $1,225,836. This figure represents the amount of readily available funds Beard Papas had at the start of the fiscal year to cover immediate obligations and investments. Cash equivalents are defined as highly liquid investments with a maturity of three months or less when purchased.
For a prospective franchisee, understanding the franchisor's cash position can be important. A healthy cash balance suggests financial stability and the ability to support franchisees. It can also indicate the company's capacity to invest in new initiatives, marketing, and overall system improvements.
However, it is essential to consider this figure in conjunction with other financial metrics and trends. Reviewing the cash flow statements, income statements, and balance sheets over several years provides a more comprehensive view of Beard Papas's financial health. Additionally, franchisees should inquire about how Beard Papas manages its cash reserves and what strategies it employs to maintain financial stability and support its franchise network.