What was the total cash and cash equivalents for Beauty Bungalows at the end of 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 total cash and cash equivalents at the end of 2023 were $115,727. This figure represents the amount of cash and other liquid assets that Beauty Bungalows had readily available at the close of the fiscal year. This is an important indicator of the company's financial health and its ability to meet short-term obligations.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests that Beauty Bungalows is financially stable and capable of supporting its franchisees. It can also indicate the company's ability to invest in new initiatives, marketing, and other resources that benefit the entire franchise system.
However, it's important to consider this figure in the context of Beauty Bungalows' overall financial performance. While a cash balance of $115,727 at the end of 2023 appears positive, it's essential to review the statements of cash flows to understand how Beauty Bungalows generated and used its cash during the year. Analyzing the cash flow from operating, financing, and investing activities provides a more complete picture of the company's financial management and sustainability. Furthermore, the FDD indicates that at the beginning of 2023, Beauty Bungalows had cash and cash equivalents totaling $124,233, indicating a decrease of cash and cash equivalents by the end of the year.