What was the net cash from operating activities for Coffee News in 2024?
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 net cash from operating activities in 2024 was $24,206. This figure represents the cash flow generated by the company's core business operations during that year. In comparison, the net cash from operating activities in 2023 was $3,673.
Several factors contributed to this net cash flow. The net income (loss) was $28,451 in 2024 and $(1,014) in 2023. Adjustments to reconcile net profit to net cash from operating activities include the forgiveness of short-term debt, which was ($20,000) in 2024 and $0 in 2023. There was also a decrease in accounts receivable of ($5,198) in 2024, compared to an increase of $3,528 in 2023. Additionally, there was an increase in accounts payable of $1,058 in 2024, compared to a decrease of ($2,224) in 2023, and an increase in accrued expenses of $19,895 in 2024, compared to $3,383 in 2023.
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 from operations indicates that the company is generating sufficient cash to cover its operating expenses and potentially reinvest in the business. This information, combined with other financial metrics, can help potential franchisees assess the overall financial viability of the franchise opportunity.