What was the net cash provided by (used in) financing activities for Beauty Bungalows in 2024?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
BALANCE, DECEMBER 31, 2024 | $ (209,773) |
Beauty Bungalows Franchising, LLC STATEMENTS OF CASH FLOWS For the years ended December 31, 2024 and 2023
| 2024 | 2023 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | _ | _ | ||
| Net loss | $ | (243,301) | $ | (85,311) |
| Change in: | _ | |||
| Deferred revenue | 442,600 | 214,600 | ||
| Credit card | 13,933 | - | ||
| Deferred acquisition costs | (196,874) | (115,783) | ||
| Net cash provided by operating activities | 16,358 | 13,506 | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Member contributions | 16,618 | 37,988 | ||
| Member distribtuions | - | (60,000) | ||
| Net cash provided by (used in) financing activities | 16,618 | (22,012) | ||
| Net change in cash and cash equivalents | $ | 32,976 ŕ | $ | (8,506) , , |
| Cash and cash equivalents at beginning of year | 115,727 | 124,233 | ||
| cush und cush equivalents at segimining of your | 113,727 | 12 1,233 | ||
| Cash and cash equivalents at end of year | $ | 1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the net cash provided by financing activities in 2024 was $16,618. This figure represents the net result of member contributions and distributions during that year. Specifically, member contributions totaled $16,618, while member distributions were $0.
In comparison, the net cash provided by (used in) financing activities for Beauty Bungalows in 2023 was $(22,012). This was the result of member contributions of $37,988 and member distributions of $(60,000).
Understanding the cash flow from financing activities is crucial for prospective franchisees as it indicates how Beauty Bungalows manages its capital structure and its reliance on member funding. A positive cash flow from financing activities, as seen in 2024, suggests that the company is attracting investments from its members, while a negative cash flow, as in 2023, indicates that the company distributed more cash to its members than it received in contributions.