What was the net cash provided (used) by investing 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 provided (used) by investing activities in 2023 was $0. This indicates that during 2023, Chocolate Bash did not have any significant cash inflows or outflows related to its investments, such as purchasing or selling property, equipment, or securities. This could reflect a period of stability in terms of capital expenditures and investment strategies.
For a prospective franchisee, this information provides insight into how Chocolate Bash manages its capital and investments. A consistent $0 figure for investing activities over the three years (2021, 2022 and 2023) might suggest a conservative approach to capital expenditures or that the company is not heavily involved in activities that require significant investment.
However, it is important to consider this figure in conjunction with other financial data, such as operating and financing activities, to get a comprehensive understanding of Chocolate Bash's financial health and strategy. A potential franchisee may want to inquire about the company's future investment plans and how they might impact the franchise system.