What was the cash and cash equivalents at the beginning of the year for Beauty Bungalows in 2022?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
23 | $ 16,910 | | Members' interest | 100% |
Beauty Bungalows Franchising, LLC STATEMENT OF CASH FLOWS For the Year Ended December 31, 2023 and 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | _ | |||
| Net income loss | $_ | (85,311) | $_ | (68,334) |
| Change in: | ||||
| Deferred revenue | 214,600 | - | ||
| Deferred acquisition costs | _ | (115,783) | _ | |
| Net cash provided by (used in) operating activities | 13,506 | (68,334) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES Member capital contributions Member capital distributions Net cash (used in) provided by financing activities | _ | 37,988 (60,000) (22,012) | _ | 206,568 (39,041) 167,527 |
| Net change in cash and cash equivalents | $ | (8,506) | $ | 99,193 |
| Cash and cash equivalents at beginning of year | _ | 124,233 | _ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2022 was $25,040. This figure represents the amount of readily available funds Beauty Bungalows had at the start of the fiscal year to cover immediate obligations and investments.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. Conversely, a low cash balance might indicate financial strain, potentially affecting the level of support and resources available to new franchisees.
It is important to note that this figure is a snapshot in time and does not reflect the entirety of Beauty Bungalows' financial health. Reviewing the complete financial statements, including the balance sheet, income statement, and statement of cash flows, will provide a more comprehensive understanding of the franchisor's financial performance and stability. Additionally, comparing these figures across multiple years can reveal trends and potential areas of concern or strength.