What was the net decrease in cash for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
s.
STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2023
| Net loss | $ (307,811) |
|---|---|
| Adjustments to reconcile net loss to net cash | |
| flows used by operating activities: | |
| Changes in operating assets and liabilities: | |
| Royalties and marketing receivable | (3,659) |
| Deposits | (5) |
| Accounts payable and accrued expenses | 50,589 |
| Deferred revenue | 185,083 |
| Cash flows used by operating activities Cash flows from financing activities | (75,803) |
| - | 49,220 |
| Proceeds from issuance of note payable to related party | 49,220 |
| Cash flows provided by financing activities | 49,220 |
| Net decrease in c |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the net decrease in cash for the company was $26,583. This figure represents the overall reduction in Better Blend's cash holdings during the specified period, reflecting the difference between cash inflows and cash outflows. Understanding this decrease is crucial for potential franchisees as it provides insight into the company's cash flow management and financial stability.
Several factors contributed to this net decrease in cash. The net loss for the period was $307,811, which directly impacts the cash position. However, this loss was partially offset by adjustments and changes in operating assets and liabilities. For example, deferred revenue increased by $185,083, indicating that Better Blend received cash for services or products that will be delivered in the future. Additionally, accounts payable and accrued expenses increased by $50,589, suggesting that Better Blend deferred some payments, conserving cash in the short term.
Financing activities also played a role in Better Blend's cash flow. Proceeds from the issuance of a note payable to a related party provided $49,220 in cash. Despite this inflow, the overall decrease in cash was $26,583. The beginning cash balance was $63,295, and after accounting for the net decrease, the ending cash balance was $36,712. This information is vital for prospective franchisees to assess the financial health and operational efficiency of Better Blend.