What was the net cash from operating activities for Coffee News in 2023?
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' 2025 Franchise Disclosure Document, the net cash from operating activities in 2023 was $3,673. This figure represents the cash flow generated from the company's core business operations during that year. It's a key indicator of Coffee News's ability to generate sufficient cash to maintain and grow its business.
For a prospective franchisee, understanding the net cash from operating activities provides insight into the financial health and stability of Coffee News. A positive cash flow suggests that the company is effectively managing its revenues and expenses related to its primary business activities, such as franchise sales, royalty collection, and training programs. This can be reassuring for franchisees who are considering investing in the Coffee News brand.
However, it's important to consider this figure in conjunction with other financial metrics and trends. For example, the FDD also shows that the net income (loss) for 2023 was $(1,014). The reconciliation between net income and net cash from operating activities involves adjustments for items such as forgiveness of short-term debt, changes in accounts receivable, accounts payable, and accrued expenses. These adjustments provide a more complete picture of the company's cash-generating ability.
Prospective franchisees should review the complete financial statements and notes in the FDD to gain a thorough understanding of Coffee News's financial performance. Consulting with a financial advisor can also help in assessing the implications of these figures for their investment decision.