What was the cash balance at the beginning of 2024 for Coffee News?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Cash flows from operating activities | ||
| Net Income (loss) | $ 2 8,451 | $ ( 1,014) |
| Adjustments to reconcile net profit to net | ||
| cash from operating activities | ||
| Forgiveness of short-term debt | ( 20,000) | - |
| Decrease (increase) in: | ||
| Accounts receivable | (5,198) | 3,528 |
| Increase (decrease) in: | ||
| Accounts payable | 1,058 | (2,224) |
| Accrued expenses | 19,895 | 3,383 |
| Net cash from operating activities | 24,206 | 3,673 |
| Cash flows from financing activities | ||
| Principal payments on short-term debt | ( 40,000) | - |
| Net cash from financing activities | ( 40,000) | - |
| Net change in cash | ( 15,794) | 3 ,673 |
| Cash, beginning of year | 9 6,758 | 9 3,085 |
| Cash, end of year | $ 8 0,964 | $ 9 6,758 |
| Non-cash financing activities | ||
| Forgiveness of short-term debt | $ ( 20,000) | $ - |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the cash balance at the beginning of 2024 was $96,758. This figure is derived from the cash flow statements included in the FDD, which provide a snapshot of the company's financial activities over the past few years. Specifically, the statement details the cash flow from operating and financing activities, as well as reconciliation of the net profit to net cash. The cash flow statement shows the beginning and ending cash positions for both 2023 and 2024.
For a prospective Coffee News franchisee, understanding the franchisor's cash flow and cash position is crucial. It offers insights into the financial stability and operational efficiency of the company. A healthy cash balance suggests that Coffee News is managing its finances effectively and has sufficient resources to support its franchisees. This can be reassuring for new franchisees who are investing in the brand and relying on the franchisor for guidance and support.
However, it's important to consider these figures in the context of the overall financial health of Coffee News. While a strong cash balance is a positive indicator, franchisees should also review other financial statements, such as the income statement and balance sheet, to get a comprehensive understanding of the company's financial performance. Additionally, prospective franchisees should inquire about any factors that may impact the company's future cash flow, such as changes in revenue, expenses, or investment plans.
In summary, the beginning cash balance for 2024 provides a useful data point for assessing Coffee News's financial health. However, prospective franchisees should conduct thorough due diligence and consider all available financial information before making an investment decision.