What was the net loss for Better Blend, according to the financial statements?
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 company experienced a net loss of $307,811. This figure is derived from the company's financial statements which include adjustments to reconcile the net loss to net cash flows used by operating activities. These adjustments include changes in operating assets and liabilities such as royalties and marketing receivable, deposits, accounts payable and accrued expenses, and deferred revenue.
Specifically, the adjustments to reconcile the net loss include a decrease in royalties and marketing receivable of $3,659 and a decrease in deposits of $5. Conversely, there was an increase in accounts payable and accrued expenses of $50,589 and an increase in deferred revenue of $185,083. These adjustments resulted in cash flows used by operating activities totaling $75,803. Additionally, Better Blend had cash flows from financing activities amounting to $49,220, stemming from proceeds from the issuance of a note payable to a related party.
Ultimately, these financial activities led to a net decrease in cash of $26,583. The company's cash at the beginning of the year was $63,295, which decreased to $36,712 by the end of the year. Prospective franchisees should carefully consider these financial figures to understand Better Blend's financial health and stability. Understanding the reasons behind the net loss and the adjustments made can provide valuable insights into the company's operational and financial strategies.