What was the owner's contribution (net) 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 owner's contribution (net) for financing activities in 2021 was $17,940. This figure represents the net cash provided by financing activities, which includes contributions from the owner.
This information is part of the Statement of Cash Flows, which provides insights into how Chocolate Bash generated and used cash during that year. Positive values indicate an inflow of cash, while negative values indicate an outflow. In this case, the positive value suggests that the owner contributed more cash than was withdrawn during 2021.
For a prospective franchisee, this indicates the level of financial support the owner provided to the company during that period. It is important to note that owner's contributions can vary significantly from year to year, depending on the company's financial needs and the owner's investment strategy. Reviewing these figures over several years, as presented in the FDD, can provide a more comprehensive understanding of the owner's financial commitment to Chocolate Bash.
It is important to consider these figures in the context of the overall financial health of Chocolate Bash. While owner's contributions can provide a boost to the company's cash flow, they may also indicate that the company is facing financial challenges and requires additional funding. Therefore, prospective franchisees should carefully analyze the Statement of Cash Flows and other financial statements to assess the financial stability and performance of Chocolate Bash.