What was the cash balance at the beginning of the year for Bor Restoration in 2021?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ative expenses | 592,756 | 263,246 | 108,423 | | Marketing expenses | 23,702 | 4 | 4,155 | | Total Operating Expenses | 834,562 | 520,649 | 251,820 | | NET INCOME | $ 386,160 | $ 420,082 | $ 291,217 |
| Beginning owners' equity | $ 304,641 | $ | 220,953 | $ 244,736 |
|---|---|---|---|---|
| Net contributions (distributions) | (52,004) | (336,394) | (315,000) | |
| Net income | 386,160 | 420,082 | 291,217 | |
| ENDING OWNERS' EQUITY | $ 638,797 | $ | 304,641 | $ 220,953 |
| 2022 | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | |||||
| Net income | $ | 386,160 | $ | 420,082 | $ 291,217 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||
| Amortization | 2,738 | ||||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | (33,624) | (25,761) | (10,293) | ||
| Prepaid expenses | 117,025 | (119,713) | |||
| Other assets | (14,028) | (10,205) | (8,013) | ||
| Accounts payable | 466 | (5,476) | 16 |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the cash balance at the beginning of 2021 was $185,894. This figure represents the amount of cash Bor Restoration had on hand as it entered the 2021 fiscal year. This is an important indicator of the company's financial health and liquidity at that time.
For a prospective franchisee, understanding the franchisor's beginning cash balance in prior years can provide insights into the company's financial stability and growth trajectory. A higher beginning cash balance may suggest a stronger financial position, while a lower balance could indicate potential financial challenges. Reviewing these figures over several years, as presented in the FDD, allows for a more comprehensive assessment of the franchisor's financial management.
It's also important to note that this cash balance is just one aspect of Bor Restoration's overall financial picture. Franchisees should consider this figure in conjunction with other financial data, such as revenues, expenses, and liabilities, to gain a complete understanding of the franchisor's financial health. Consulting with a financial advisor is recommended to properly interpret these financial statements and understand the potential risks and opportunities associated with investing in a Bor Restoration franchise.