What was the net increase or decrease in cash for Bor Restoration in 2021?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
OF TH | 257,399 263,246 4 520,649 | | Total Operating Emperiors | | | | | | | NET INCOME | $ 3,179,55 | 9 5 | 386,160 | $ | 420,082 |
| 2023 | 2022 | 2021 | ||
|---|---|---|---|---|
| Beginning owners' equity | $ 638,797 | $ | 304,641 | $ 220,953 |
| Net contributions (distributions) | (531,656) | (52,004) | (336,394) | |
| Net income | 3,179,559 | 386,160 | 420,082 | |
| ENDING OWNERS' EQUITY | $ 3,286,700 | $ | 638,797 | $ 304,641 |
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash flows from operating activities: Net income | $ 3,179,559 | $ 386,160 | $ 420,082 |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: Amortization of right of use asset | 52,875 | 46,569 | |
| Changes in operating assets and liabilities: | 22,0.0 | ,. | |
| Accounts receivable | (140,364) | (33,624) | (25,761) |
| Prepaid expenses | (341) | 117,025 | (119,713) |
| Other assets | (23,175) | (14,028) | (10,205) |
| Accounts payable | 1,210 | 466 | (5,476) |
| Accrued expenses |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the net increase in cash for the company in 2021 was $18,521. This figure represents the net change in the company's cash position during that year, taking into account all cash inflows (increases) and cash outflows (decreases) from operating, financing, and investing activities. This indicates that Bor Restoration experienced a modest increase in its cash reserves during 2021.
Specifically, the provided table in Item 23 of the FDD outlines the various factors contributing to this net increase. These include cash flows from operating activities, such as net income, adjustments to reconcile net income, and changes in operating assets and liabilities. It also factors in cash flows from financing activities, such as owner contributions and distributions. The net increase in cash is calculated by summing the net cash from operating activities and the net cash from financing activities.
For a prospective franchisee, this information provides insight into Bor Restoration's financial performance and cash management. A positive net increase in cash suggests that the company is generating more cash than it is using, which can be a sign of financial stability. However, it is important to consider the specific factors driving this increase, such as owner contributions or changes in operating assets and liabilities, to gain a more complete understanding of the company's financial health. Reviewing these figures over several years, as presented in the FDD, can provide a more comprehensive view of Bor Restoration's financial trends.