What was the net cash provided (used) by financing activities for Chocolate Bash in 2023?
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 used by financing activities in 2023 was ($61,122). This figure reflects the overall cash flow impact from activities related to funding the business, such as owner's contributions. A negative value indicates that Chocolate Bash used more cash than it generated from financing activities during that year.
Specifically, the FDD indicates that the owner's contribution (net) was also ($61,122) in 2023. This suggests that the primary driver of the net cash used in financing activities was the owner's financial input into the company.
For a prospective franchisee, understanding these figures is crucial as it provides insight into how Chocolate Bash manages its finances and relies on owner contributions. It's important to compare these figures with previous years (2022 and 2021 are provided for context) to identify trends and assess the financial stability and reliance on owner funding. A potential franchisee should further investigate the reasons behind these cash flow patterns to make an informed investment decision.