What was the net cash provided by financing activities for Cilantro Taco Grill in 2022?
Cilantro_Taco_Grill Franchise · 2024 FDDAnswer from 2024 FDD Document
BALANCE, DECEMBER 31, 2022 | $ 100,000 | | Member contributions | 34,717 | | Member distributions | - | | Net income | (36,540) | | BALANCE, DECEMBER 31, 2023 | $ 98,177 |
CTG Franchise, LLC STATEMENTS OF CASH FLOWS For the years ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net Income | $ (36,540) $ | - |
| Change in: | ||
| Accounts receivable | - | - |
| AP and accruals | - | - |
| Net cash provided by operating activities | (36,540) | - |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchases of property and equipment | - | - |
| Net cash used by investing activities | - | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | - | - |
| Notes receivable | ||
| Contributions | 34,717 | 100,000 |
| Net cash provided by fi |
Source: Item 23 — RECEIPT (FDD pages 52–208)
What This Means (2024 FDD)
According to the 2024 FDD, Cilantro Taco Grill's net cash provided by financing activities in 2022 was $100,000. This figure represents the cash inflows the company received from external financing sources during that year.
For a prospective franchisee, understanding the franchisor's financial activities can provide insights into the company's financial health and stability. A positive net cash flow from financing activities, such as the $100,000 reported by Cilantro Taco Grill in 2022, might indicate successful capital raising efforts, which could support the company's growth and expansion plans.
However, it's important to consider the context of these financing activities. Contributions are listed as the specific source of these funds. Franchisees should investigate the nature of these contributions to fully understand their implications. While a healthy cash flow is generally positive, franchisees should also review the company's use of funds and overall financial strategy to assess long-term sustainability and potential risks.