What was the net cash used by investing activities for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
CIT), BEGINNING | (444,760) | | DISTRIBUTIONS | (534,732) | | RETAINED EARNINGS, ENDING | $ 554,725 |
CLOSETS UNLIMITED OF NEW JERSEY, INC. STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022
| Income from operations | $ 1,534,217 |
|---|---|
| Adjustments to reconcile net income to net cash provided | |
| by operating activities | |
| Depreciation and amortization | 83,985 |
| Non‐cash lease expense | 1,309 |
| (Increase) decrease in current assets | |
| Accounts receivable | (47,745) |
| Note receivable | (37,486) |
| Inventory | (4,794) |
| Employee retention tax credit receivable | (622,869) |
| Prepaid expenses and other current assets | (7,360) |
| Increase (decrease) in current liabilities | |
| Accounts payable and accrued expenses | 63,084 |
| Advances to affiliate | (2,611) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 959,730 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Purchases of property and equipment | (135,606) |
| NET CASH USED BY INVESTING ACTIVITIES | (135,606) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Net advances (payments) on line of credit | (50,000) |
| Long‐term borrowings | 33,863 |
| Payments on finance lease obligations | (3,819) |
| Stockholder distributions | (534,732) |
| NET CASH USED BY FINANCING ACTIVITIES | (554,688) |
| NET INCREASE IN CASH | 269,436 |
| CASH, BEGINNING | 405,130 |
| CASH, ENDING | $ 674,566 |
| SUPPLEMENTARY DISCLOSURES | |
| Interest pa |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts's 2025 Franchise Disclosure Document, the net cash used by investing activities in 2023 was $(135,606). This indicates that Closet Storage Concepts spent $135,606 on items that are considered investments in the company's future, such as the purchase of property and equipment.
For a prospective franchisee, this figure provides insight into how Closet Storage Concepts is allocating its capital. Investing activities typically involve the purchase of long-term assets that are expected to generate income or value over time. The amount spent on these activities can reflect the company's growth strategy and its commitment to maintaining and upgrading its operational capabilities.
In 2022, Closet Storage Concepts's net cash used by investing activities was $(29,817). This is significantly less than the amount used in 2023, which was $(135,606). The difference between these two years could be due to a variety of factors, such as a major equipment purchase or an expansion of facilities in 2023. A potential franchisee might want to inquire about the specific investments made during 2023 to better understand the company's strategic priorities and how these investments might impact the franchise system.
It is important for a potential franchisee to review these figures in conjunction with other financial data to get a comprehensive understanding of Closet Storage Concepts's financial health and investment strategies. Understanding how the company manages its cash flow and invests in its future can help a franchisee assess the stability and growth potential of the franchise system.