What was the net change in cash and cash equivalents for Beauty Bungalows in 2023?
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 change in cash and cash equivalents for the company in 2023 was a decrease of $8,506. This means that Beauty Bungalows' cash and cash equivalents decreased by this amount during the year.
This decrease in cash and cash equivalents could be due to a variety of factors, such as increased operating expenses, investments in growth, or decreased revenue. For Beauty Bungalows, the net loss for 2023 was $(85,311), but this was offset by changes in deferred revenue of $214,600 and deferred acquisition costs of $(115,783), resulting in net cash provided by operating activities of $13,506. Additionally, member capital contributions were $37,988, but member capital distributions were $(60,000), resulting in net cash used in financing activities of $(22,012).
It is important to note that this is just one year's worth of data, and it is important to look at the company's financial performance over a longer period of time to get a better understanding of its financial health. A prospective franchisee should review the complete financial statements and discuss any concerns with Beauty Bungalows to fully understand the context of this change in cash and cash equivalents.