What was the net increase (decrease) in cash 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 increase (decrease) in cash for the company in 2023 was a decrease of $37,658. This figure represents the overall change in Chocolate Bash's cash position during the year, taking into account all cash inflows and outflows from operating, investing, and financing activities.
For a prospective franchisee, this information provides insight into the financial performance and stability of Chocolate Bash. A decrease in cash could indicate that the company is facing financial challenges, such as increased expenses, decreased revenue, or significant investments in growth initiatives. However, it's important to consider this figure in the context of the company's overall financial statements and business strategy.
It is also important to note that while Chocolate Bash experienced a net decrease in cash for 2023, this does not necessarily mean the company is in financial distress. The statement of cash flows also shows the net cash provided (used) by operating, investing, and financing activities. Reviewing these individual activities can provide a better understanding of the overall decrease in cash. For example, the net cash used by financing activities was ($61,122) due to owner's contributions, which contributed to the overall net decrease in cash for the year.
A potential franchisee should investigate the reasons behind the decrease in cash and assess whether it is a temporary situation or a sign of underlying financial problems. Further analysis of Chocolate Bash's financial statements, including the balance sheet and income statement, is recommended to gain a comprehensive understanding of the company's financial health.