What was the net cash provided by financing activities for Cinch I.T. in 2020?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
EMBER'S DEFICIT, BEGINNING OF YEAR - | | (186,133) | (79,568) | | AS ADJUSTED | | | | | MEMBER'S DEFICIT, END OF YEAR | 5_ | (50,863) S | (186,133) |
| 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 | |
| SCHEDULE OF NONCASELENANCING ACTIVITIES | ||||
| Paycheck Protection Program loan forgiveness | 3 | 78,135 | $_ | |
| See secompanying notes and independent and | litors' re | eport. |
1.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the net cash provided by financing activities in 2020 was $64,364. This indicates the amount of cash Cinch I.T. received from external financing sources, such as loans or investments, minus any repayments made during that year.
Specifically, the financing activities included repayments to a member totaling $23,633, advances from related parties amounting to $70,000, and proceeds from Paycheck Protection Program loans of $17,997. These individual cash flows contributed to the overall net cash provided by financing activities.
For a prospective franchisee, this information provides insight into how Cinch I.T. manages its finances and relies on external funding. A positive net cash flow from financing activities could suggest that the company is actively seeking and securing funds to support its operations and growth. However, it's important to consider the specific sources of financing and the terms associated with them to fully understand the company's financial strategy and stability.