What was the net cash provided (used) by operating activities for Bevaris Alliance in 2023?
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 a |
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 operating activities in 2023 was a negative amount. Specifically, the FDD states that the net cash provided (used) by operating activities was approximately ($19,958). This indicates that Bevaris Alliance spent more cash than it generated from its core business operations during that year.
For a prospective franchisee, this information is crucial because it provides insight into the financial health and stability of Bevaris Alliance. A negative cash flow from operations could signal potential challenges in managing expenses, generating revenue, or both. It's important to note that this is just one year's snapshot and should be considered alongside other financial metrics and industry benchmarks.
It would be prudent for a potential Bevaris Alliance franchisee to investigate the reasons behind the negative cash flow. Understanding whether it was due to startup costs, investments in growth, or operational inefficiencies is essential. Additionally, reviewing the trend of cash flow from operations over several years would provide a more comprehensive picture of the company's financial performance. A prospective franchisee should discuss these figures with the franchisor to understand the context and future expectations for cash flow management.