How much cash was paid for interest by 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 paid for interest in 2020 was $243.
This figure is important for prospective franchisees as it provides insight into the company's financial obligations and how they manage their debt. Interest payments are a normal part of business operations, especially if the company has loans or other forms of debt financing.
Reviewing these figures over several years, as presented in the FDD, can help potential franchisees understand the trend and stability of Cinch I.T.'s financial health. It's also advisable to compare these figures with industry benchmarks to assess whether Cinch I.T.'s interest expenses are in line with similar franchise systems.