What was the net cash provided (used) by financing activities for Chocolate Bash in 2021?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
D DECEMBER 31, 2023 & DECEMBER 31, 2022 & DECEMBER 31, 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | $ 15,483 | $ 28,687 | $ 38,808 |
| Non-Cash Adjustments | |||
| Changes in Deferred Revenue | 24,896 | (23,021) | 22,000 |
| Changes in Due From Affiliate | (35,956) | - | 1,250 |
| Changes in Accounts Receivable | 19,041 | (21,194) | - |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | 23,464 | (15,528) | 62,058 |
| INVESTING ACTIVITIES | |||
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | - | - | - |
| FINANCING ACTIVITIES | |||
| Owner's Contribution (net) | (61,122) | (30,100) | 17,940 |
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | (61,122) | (30,100) | 17,940 |
| NET INCREASE (DECREASE) IN CASH | (37,658) | (45,628) | 79,998 |
| CASH AT BEGINNING OF PERIOD | 59,295 | 104,922 | 24,924 |
| CASH AT |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the net cash provided by financing activities in 2021 was $17,940. This figure represents the net result of all financing activities, which in Chocolate Bash's case, consisted solely of owner's contributions. This means that the owner put $17,940 into the business during that year.
For a prospective franchisee, understanding the franchisor's financing activities can provide insights into the financial health and stability of the company. A positive cash flow from financing activities, as seen in 2021, might indicate that the company is attracting investment or is financially supported by its owners. However, it is essential to consider this in the context of the overall financial performance of Chocolate Bash, including its operating and investing activities.
It's also worth noting that in 2022 and 2023, Chocolate Bash experienced negative cash flow from financing activities, with values of ($30,100) and ($61,122) respectively. These negative values suggest that the owner withdrew funds from the business during those years. Reviewing these trends over multiple years can give a more comprehensive picture of the financial management and capital structure of Chocolate Bash. A potential franchisee should investigate the reasons behind these fluctuations to assess any potential risks or opportunities.