What was the cash balance at the beginning of 2023 for Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
$ 92,955 | 11.77 | | BROWN'S CHICKEN LLC | | | | |
BROWN'S CHIKEN, LLC CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
| Net Earnings | $ | 92,304 | $ 139,135 |
| Adjustments to Reconcile Net Earnings to Net | |||
| Cash Flows Provided (Used) By Operating Activities: | |||
| Non-Cash Items | |||
| Allowance for Bad Debts | - | - | |
| Depreciation and Amortization | 11,713 | 26,333 | |
| Loss on Disposal of Fixed Assets | - | - | |
| (Increase) Decrease in | |||
| Accounts Receivable | (2,690) | 12,661 | |
| Uniform & Equipment Inventories | (595) | (2,018) | |
| Prepaid Expenses | (4,798) | (834) | |
| Increase (Decrease) in | |||
| Accounts Payable | 7,171 | (47,999) | |
| Accrued Payroll | 69 | 171 | |
| Accrued Expenses | - | (49,622) | |
| Deferred Revenue | - | - | |
| Total Adjustments | 10,870 | (61,308) | |
| Net Cash Provided (Used) By Operating Activities | 103,174 | 77,827 | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Proceeds From the Disposal of Other Assets | - | - | |
| Payments Received on Loans to Franchisees | - | - | |
| Purchase of Property and Equpment | (10,664) | (34,933) | |
| Due From Related Party | - | - | |
| Net Cash Provided (Used) By Investing Activities | (10,664) | (34,933) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Payments on Notes Payable | (4,446) | (5,676) | |
| Distributions to Members | (48,000) | (78,000) | |
| Net Cash (Used) By Financing Activities | (52,446) | (83,676) | |
| Net Incre |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the cash balance at the beginning of 2023 was $144,724. This figure is derived from the Consolidated Statements of Cash Flows, which tracks the movement of cash both into and out of the company over a period of time. The cash flow statement provides a clear picture of how Browns Chicken manages its cash.
For a prospective franchisee, the beginning cash balance is a snapshot of the company's financial health at that specific point in time. It can be used to assess the company's liquidity and ability to meet its short-term obligations. A higher beginning cash balance generally indicates a stronger financial position, which can be reassuring for potential investors.
However, it's important to consider this figure in conjunction with other financial data, such as the net increase or decrease in cash during the year and the cash flow from operating, investing, and financing activities. These figures provide a more complete understanding of how Browns Chicken generates and uses cash. A prospective franchisee should analyze these trends to assess the overall financial stability and performance of the company.