What was the net cash provided (used) by investing activities for Bevaris Alliance in 2022?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| NET INCOME (LOSS) | $( 57,665 ) | $ 130,380 |
| 2023 | 2022 | |
|---|---|---|
| BALANCE, BEGINNING OF YEAR | $ 170 , 724 | $ 42,901 |
| CAPITAL CONTRIBUTIONS | _ | |
| SHAREHOLDER DISTRIBUTIONS | ( 197) | ( 2,557) |
| NET INCOME (LOSS) | _(_57,665) | 130,380 |
| BALANCE, END OF YEAR | $ 112,862 | $ 170,724 |
| 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) | _ |
| Li |
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 used by investing activities in 2022 was $(1,360). This indicates that Bevaris Alliance spent $1,360 more than it generated from its investing activities during that year. Investing activities typically include the purchase and sale of long-term assets such as property, plant, and equipment, as well as investments in securities. In Bevaris Alliance's case, the specific investing activity listed is security deposits.
For a prospective franchisee, this information provides insight into how Bevaris Alliance manages its capital and invests in its own growth. A negative cash flow from investing activities suggests that the company is investing in its future, which could be a positive sign. However, it's important to consider this figure in conjunction with other financial data, such as cash flow from operating and financing activities, to get a complete picture of the company's financial health.
It is also important to note that the security deposit activity in 2023 was $(2,354). This shows an increase in the amount of cash used in investing activities from 2022 to 2023. Reviewing these figures over several years can reveal trends in Bevaris Alliance's investment strategies and capital expenditures.