What was the net cash provided (used) by financing activities for Bevaris Alliance in 2022?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: Net income(loss) | ¢/ 57 665\ | 6 120 200 |
| Adjustments to reconcile net | $( 57,665 ) | $ 130,380 |
| income(loss) to net cash provided | ||
| (used) by operating activities: | 14,656 | 6,107 |
| Depreciation and amortization | ||
| Changes in operating assets and | 14,000 | 0,107 |
| liabilities: | ||
| Decrease in accounts receivable | 24,425 | ( 29,829) |
| Increase in prepaid expenses | ||
| Increase in prepart expenses Increase in accounts payable | ( 30,241) 3,612 | 27,972 |
| Increase in credit card payable | 3,068 | |
| Increase in insurance payable | 25,929 | 1 005 |
| Decrease in income taxes payable | ( 3,742) | 1,985 |
| Total adjustments | 37,707 | 6,235 |
| NET CASH PROVIDED (USED) BY | ||
| OPERATING ACTIVITIES | ( 19,958 ) | 136,615 |
| CASH FLOWS FROM INVESTING | ||
| ACTIVITIES: | . 0.254 | |
| Security deposit | ( 2,354 ) | ( 1,360) |
| NET CASH PROVIDED (USED) BY INVESTING | • | |
| ACTIVITIES | ( 2,354 ) | ( 1,360 ) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Advances from related party | - | 3 , 570 |
| Payments to related party | ( 77,869) | _ |
| Line of credit advances - net | 1,000 | |
| Marketing reserve | 102,108 | 72,220 |
| Capital distributions | _(197) | ( 2,557 ) |
| NET CASH PROVIDED (USED) BY FINANCING | ||
| ACTIVITIES (5522, 21 521616216 | 25,042 | 73,233 |
| NET INCREASE CASH AND CASH EQUIVALENTS | 2,730 | 208,488 |
| CASH AND CASH EQUIVALENTS AT | ||
| BEGINNING OF PERIOD | 256,474 | 47,986 |
| CASH AND CASH EQUIVALENTS AT | ||
| DECEMBER 31 | $ 259,204< |
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the net cash provided by financing activities in 2022 was $73,233. This indicates the total cash inflow from activities like advances from related parties and marketing reserve, minus any payments or capital distributions.
For a prospective Bevaris Alliance franchisee, understanding the franchisor's cash flow from financing activities can provide insights into how the company is funding its operations and growth. A positive cash flow from financing activities, as seen in 2022, suggests that the company is attracting investment or utilizing debt effectively.
However, it's essential to consider the specific sources of financing. In Bevaris Alliance's case, these include advances from related parties, line of credit advances, marketing reserve, and capital distributions. Franchisees should investigate the terms and conditions of any related-party transactions or debt arrangements to assess their potential impact on the franchisor's financial stability and long-term strategy. Understanding the franchisor's financial health is crucial for franchisees, as it can affect the support and resources available to them.