What was the net cash used in investing activity for Beard Papas in 2022?
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 net cash used in investing activities in 2022 was $(13,048). This indicates that Beard Papas spent $13,048 more on investing activities than it generated from them during that year. These activities can include purchases of property, equipment, and security deposits.
For a prospective franchisee, this figure provides insight into how Beard Papas is investing in its own business. While a negative number indicates more cash was spent than received from investments, it does not inherently signal poor financial health. It is common for businesses to invest in assets to support growth.
In 2022, the investing activities included security deposits of $(13,048). Reviewing these figures over several years, if available, would give a better understanding of Beard Papas's investment trends and their potential impact on the company's financial stability and growth prospects. It's important to consider these figures in conjunction with other financial data to get a comprehensive view of the company's financial health.