What was the cash paid for interest by Caring Transitions in 2023?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities | $ 2,720,273 | 2,329,074 | 1,017,523 |
| Net income | |||
| Adjustment to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Depreciation | 114,120 | 109,265 | 78,898 |
| Non-cash lease expense | 5,721 | (944) | 1,350 |
| Net change in assets and liabilities: | (173,605) | (143,068) | 4,928 |
| Accounts receivable | |||
| Other receivable | - | 6,463 | (6,463) |
| Deposit - payroll | - | - | 30,396 |
| Franchise contract asset | (85,147) | (68,345) | (25,712) |
| Accounts payable | (7,503) | 29,975 | 54,536 |
| Unearned revenue | 354,190 | (199,510) | 279,820 |
| Franchise contract liability | 336,556 | 244,898 | 144,805 |
| Accrued expenses | (38,412) | (3,203) | 139,062 |
| Net cash provided by operating activities | 3,226,193 | 2,304,605 | 1,719,143 |
| Cash flows from investing activities | |||
| Property and equipment purchased | (294,719) | (300,360) | (401,836) |
| Net cash used by investing activities | (294,719) | (300,360) | (401,836) |
| Cash flows from financing activities | |||
| Repayment of notes payable | (32,159) | (31,209) | (30,282) |
| Distributions | (1,705,000) | (1,947,499) | (1,092,501) |
| Net cash used by financing activities | (1,737,159) | (1,978,708) | (1,122,783) |
| Change in cash and restricted cash | 1,194,315 | 25,537 | 194,524 |
| Cash and restricted cash at beginning of year | 1,120,470 | 1,094,933 | 900,409 |
| Cash and restricted cash at end of year | $ 2,314,785 | 1,120,470 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the cash paid for interest in 2023 was $1,753. This figure represents the actual cash outflow from Caring Transitions to cover interest expenses during that fiscal year.
For a prospective franchisee, understanding the franchisor's interest payments can provide insight into the company's debt management and financial health. While this specific figure reflects Caring Transitions' interest expenses as a company, it doesn't directly translate to the franchisee's potential interest expenses. However, it can be indicative of the franchisor's overall financial strategy and stability.
It's important to note that this number is a historical figure and may not be indicative of future interest payments. Factors such as changes in debt levels, interest rates, and overall economic conditions can influence these payments. Therefore, while this information is useful for understanding Caring Transitions' past financial performance, prospective franchisees should also consider current financial statements and consult with financial advisors to assess the company's current financial health and future prospects.