What was the cash at the beginning of the period for Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
WAY FRANCHISING LLC STATEMENT OF CASHFLOWS FOR THE YEAR ENDED DECEMBER 31, 2023
| Net Income | $ (27,161) |
|---|---|
| Non-Cash Adjustments | |
| Changes in Current Assets | (515) |
| Changes in Deferred Revenue | 15,000 |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | (12,676) |
| INVESTING ACTIVITIES | |
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | - |
| FINANCING ACTIVITIES | |
| Owner's Contribution | (91,721) |
| Due to Related Party | 59,397 |
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (32,324) |
| NET INCREASE (DECREASE) IN CASH | (45,001 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the cash at the beginning of the period was $50,000. The cash at the end of the period was $5,000. During the period, the net income was a loss of $27,161.
Several factors contributed to the change in cash position during the period. Non-cash adjustments amounted to $515, while changes in deferred revenue accounted for $15,000. Net cash used by operating activities totaled $12,676. There were no investing activities during this period.
Financing activities also played a role in the cash flow. The owner's contribution was $(91,721), and due to a related party, there was $59,397. Overall, net cash used by financing activities was $(32,324). The net decrease in cash for the period was $(45,001).