What was the net change in cash 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 change in cash for the company in 2024 was a decrease of $15,794. This means that Coffee News had less cash on hand at the end of 2024 than it did at the beginning of the year. The beginning cash for 2024 was $96,758, and the ending cash was $80,964.
To arrive at the net change in cash, Coffee News calculated cash flows from operating activities and cash flows from financing activities. The net cash from operating activities was $24,206, while the net cash from financing activities was a negative $40,000 due to principal payments on short-term debt.
Several factors contributed to these cash flows. Net income for 2024 was $28,451, but this was adjusted by several items, including a $20,000 forgiveness of short-term debt, a decrease in accounts receivable of $5,198, an increase in accounts payable of $1,058, and an increase in accrued expenses of $19,895. These adjustments reconcile the net profit to the net cash from operating activities. For a prospective franchisee, this level of detail in the financial statements provides insight into how Coffee News manages its cash and finances.