What was the cash and cash equivalents at the beginning of the year for Caring Senior Service in 2023?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ears Ended December 31, 2024, 2023, and 2022**
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Operating Activities | |||
| Net income (loss) | $ 419,016 | $ (174,967) | $ (464,786) |
| Adjustments to Reconcile Net Loss to Net Cash | |||
| Provided (Used) by Operating Activities: | |||
| Depreciation expense | 5,627 | 9,644 | 9,644 |
| Changes in: | |||
| Accounts receivable | (64,728) | 57,854 | 64,930 |
| Prepaid expenses | 12,560 | 47,249 | (23,911) |
| Accounts payable | (8,512) | (6,701) | 108,326 |
| Interest payable | 37,212 | - | - |
| Grab the bars fundraiser liability | - | - | (109,343) |
| Employee lease liability - related party | (5,461) | 42,588 | 19,804 |
| Accrued state franchise taxes | 5,185 | 7,203 | (1,503) |
| Deferred franchise fees | 38,244 | 40,967 | (71,868) |
| Net Cash Provided (Used) by Operating Activities | 439,143 | 23,837 | (468,707) |
| Investing Activities | |||
| Net changes in notes receivable | (51,846) | 12,000 | (10,450) |
| Net changes in loans to partner-owned entities | (116,539) | (100,000) | (52,000) |
| Net Cash Provided (Used) by Investing Activities | (168,385) | (88,000) | (62,450) |
| Financing Activities | |||
| Principal payments on long-term debt | (8,135) | (8,840) | (7,966) |
| Proceeds from related party note | - | 200,000 | - |
| Partner Distributions | - | - | (593) |
| Net Cash Provided (used) by Financing Activities | (8,135) | 191,160 | (8,559) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 262,623 | 126,997 | (539,716) |
| Cash and Cash Equivalents at Beginning of Year | 257,005 | 130,008 | 669,724 |
| Cash and Cash Equivalents at End of Year | $ 519,628 | $ 257,005 | $ 130,008 |
| Supplemental Disclosures of Cash Flow Information: | |||
| Interest paid | $ 25,687 | $ 389 | $ 1,263 |
| State franchise tax paid | $ 23,251 | $ 17,968 | $ 10,738 |
Notes to Financial Statements December 31, 2024, 2023, and 2022
1. Nature of the Organization
The Reporting Entity
Caring Senior Service Franchise Partnership, L.P.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2023 was $130,008. This figure represents the amount of readily available funds the company had at the start of the fiscal year, which can be used for immediate expenses, investments, or other business activities.
For a prospective franchisee, understanding the franchisor's cash position is crucial as it indicates the financial health and stability of the company. A healthy cash balance suggests that Caring Senior Service is capable of meeting its short-term obligations and investing in the growth of the franchise system. It also reflects the franchisor's ability to support franchisees through training, marketing, and ongoing operational assistance.
However, it's important to consider this figure in the context of the company's overall financial performance. While a cash balance of $130,008 at the beginning of 2023 provides a snapshot of the company's liquidity at that specific point in time, it does not reveal the complete financial picture. A prospective franchisee should also review the company's income statements, balance sheets, and cash flow statements to assess its profitability, solvency, and overall financial health.
Additionally, it would be prudent for a potential Caring Senior Service franchisee to inquire about the factors that influenced the cash position at the beginning of 2023. Understanding the sources and uses of cash during that period can provide valuable insights into the company's financial management practices and its ability to generate and manage cash flow effectively.