What was the cash balance at the beginning of the year for Cinch I.T. in 2020?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2021 | Restated 2020 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net income (loss) before extraordinary income | S | 57.135 | S | (139,052) |
| Adjustments to reconcile net income (loss) before extraordinary | ||||
| income to net cash provided (used) by operations: | ||||
| Changes in operating assets and liabilities: | ||||
| (Increase) decrease in: | na w Made | |||
| Receivables - trade | (63,978) | 47,332 | ||
| Prepaid expenses | (14,697) | - | ||
| Increase (decrease) in: | 12 202 | 1000000 | ||
| Payables - trade | 16,601 | (5.624) | ||
| Accraed liabilities | 2,456 | (4,340) | ||
| Deferred revenue | - | 27,325 | - | 41,000 |
| Total adjustments | - | (32,293) | - | 78,368 |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | - | 24,842 | - | (60,684) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Repayments to member | (41,467) | (23.633) | ||
| Advances from related parties | 37,866 | 70,000 | ||
| Proceeds from Paycheck Protection Program Joans | 60.138 | 17.997 | ||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | _ | 56,537 | 3- | 64,364 |
| NET INCREASE IN CASH | 81,379 | 3,680 | ||
| CASH, BEGINNING OF YEAR | - | 19,855 | _ | 16,175 |
| CASH, END OF YEAR | s_ | 101,234 | 5_ | 19,855 |
| SUPPLEMENTAL DISCLOSURES | ||||
| Cash paid for interest | S | s _ | 243 |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the cash balance at the beginning of the year 2020 was $16,175. This figure represents the amount of cash Cinch I.T. had on hand as of January 1, 2020, which serves as the starting point for tracking cash flow throughout that year.
The beginning cash balance is a crucial indicator of Cinch I.T.'s financial health and liquidity at the start of the year. It reflects the company's ability to meet its immediate obligations and invest in growth opportunities. A higher beginning cash balance generally indicates a stronger financial position, while a lower balance may suggest potential challenges in managing day-to-day expenses or funding new initiatives.
For a prospective Cinch I.T. franchisee, understanding the franchisor's cash flow history can provide valuable insights into the stability and performance of the franchise system. Reviewing trends in beginning and ending cash balances, as well as the factors driving cash flow, can help franchisees assess the financial risks and opportunities associated with investing in a Cinch I.T. franchise.