What was the net increase in cash for Cinch I.T. in 2021?
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 increase in cash for Cinch I.T. in 2021 was $81,379. This figure represents the overall change in the company's cash position during that year, reflecting the combined impact of cash inflows (money coming in) and cash outflows (money going out). For comparison, the net increase in cash for the restated year 2020 was $3,680. This indicates a significant improvement in Cinch I.T.'s cash flow from 2020 to 2021.
Understanding the net increase in cash is crucial for prospective franchisees as it provides insight into the financial health and stability of Cinch I.T. A positive net increase suggests that the company is generating more cash than it is spending, which can be a sign of efficient operations and profitability. This can be reassuring for potential investors who want to ensure that the franchisor is financially sound and capable of supporting its franchisees.
However, it's important to consider this figure in the context of the company's overall financial performance and industry trends. While a substantial increase in cash is generally positive, it's essential to investigate the factors driving this change. For instance, it could be due to increased sales, reduced expenses, or external funding. A prospective franchisee should review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of Cinch I.T.'s financial situation and future prospects.