What was the ending cash balance for Counselor Realty in 2024?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024, 2023 and 2022
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash Flows From Operating Activities | ||||
| Net income (loss) | $ (3,967) | $ | (8,873) | $ 11,780 |
| Adjustments to reconcile net income (loss) to net cash | ||||
| flows from operating activities: | ||||
| Interest income earned on certificate of deposit | (977) | (280) | - | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 1,574 | 1,504 | (662) | |
| Due to franchise | 50 | - | - | |
| Due to parent company | - | - | (500) | |
| Net cash flows from operating activities | (3,320) | (7,649) | 10,618 | |
| Cash Flows From Investing Activities | ||||
| Purchase of certificates of deposit | (136,814) | (130,000) | - | |
| Redemption of certificates of deposit | 130,280 | - | - | |
| Net cash flows from investing activities | (6,534) | (130,000) | - | |
| Increase (decrease) in cash | (9,854) | (137,649) | 10,618 | |
| Cash, Beginning | 80,311 | 217,960 | 207,342 | |
| Cash, Ending | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the ending cash balance for the company in 2024 was $70,457. This figure represents the amount of cash Counselor Realty had on hand at the close of business on December 31, 2024. This cash balance is detailed within the company's balance sheets and statements of cash flows included in the FDD as Exhibit A. For comparison, the ending cash balance for 2023 was $80,311.
The statement of cash flows provides a summary of all the cash inflows and outflows that occurred during the year. The decrease in cash from $80,311 in 2023 to $70,457 in 2024 reflects a net decrease in cash of $9,854 during the 2024 fiscal year. This decrease is influenced by both operating and investing activities, as detailed in the statement of cash flows.
A prospective franchisee should consider Counselor Realty's cash flow trends over the past three years, as presented in the FDD. Analyzing these trends can provide insights into the company's financial stability and its ability to manage cash effectively. It is also important to note that Counselor Realty maintains its cash in financial institutions, and these balances may, at times, exceed federally insured limits. This is a common practice for businesses, but franchisees may want to inquire about the company's risk management strategies related to cash deposits.
Reviewing the complete financial statements, including the balance sheets, income statements, and statements of cash flows, will give potential franchisees a more comprehensive understanding of Counselor Realty's financial health. Consulting with a financial advisor is recommended to fully assess the implications of these financial statements.