What was the cash and restricted cash at the beginning of the year for Caring Transitions in 2023?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
,000) | (1,947,499) | (1,092,501) | | Retained earnings, ending | $ 1,940,228 | 924,955 | 543,380 |
| 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 | 1,094,933 |
| Supplementary information: | |||
| Cash paid for interest | $ 804 | 1,753 | 3,734 |
| Cash and restricted cash: | |||
| Cash | $ 2,075,001 | 949,879 | 979,239 |
| Restricted cash | 239,784 | 17 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the cash and restricted cash at the beginning of 2023 was $1,094,933. This figure represents the total amount of readily available funds the company had at the start of the fiscal year, combining both unrestricted cash and cash held for specific purposes.
For a prospective franchisee, this number provides insight into the financial health and liquidity of Caring Transitions. A strong cash position at the beginning of the year can indicate the company's ability to meet its short-term obligations and invest in growth opportunities. It also suggests the company has effective cash management practices.
It is important to note that this is just one data point and should be considered alongside other financial metrics and qualitative factors when evaluating the franchise opportunity. Reviewing the trend of cash and restricted cash over several years, as presented in the table, can provide a more comprehensive understanding of the company's financial performance.