What was the net cash provided by (used in) operating activities 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 net cash provided by (used in) operating activities in 2022 was $(68,334). This means that Beauty Bungalows had a net cash outflow of $68,334 from its core business operations during that year.
This figure is derived from the statement of cash flows, which reconciles net income to the actual cash generated or used by the company. It takes into account changes in accounts like deferred revenue and deferred acquisition costs to arrive at the cash impact of operations. For Beauty Bungalows, the negative value indicates that the company's operating activities consumed more cash than they generated in 2022.
Prospective franchisees should pay close attention to these figures as they provide insight into the financial health and stability of Beauty Bungalows. A history of negative cash flow from operations could signal potential challenges in the business model or the need for significant capital investment to sustain operations. It's important to review these trends over multiple years to assess the overall financial performance of the franchisor.