What was the increase (decrease) in cash for Counselor Realty in 2022?
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 company experienced an increase in cash of $10,618 in 2022. This figure is derived from the statement of cash flows for the year ended December 31, 2022. Understanding the cash flow statement is crucial for prospective franchisees as it provides insights into the company's financial health and its ability to manage cash effectively.
Specifically, the cash flow statement details the various activities that contributed to this increase. It begins with the net income (loss), then adjusts for non-cash items and changes in operating assets and liabilities to arrive at the net cash flow from operating activities. For Counselor Realty in 2022, the net cash flows from operating activities amounted to $10,618. This indicates the company's core business operations generated a positive cash flow during that period.
Additionally, the statement includes cash flows from investing activities, such as the purchase and redemption of certificates of deposit. However, these investing activities did not impact the overall increase in cash for 2022, as the increase is solely attributed to operating activities. Reviewing these figures allows potential franchisees to assess the stability and profitability of Counselor Realty's business model.
In summary, the $10,618 increase in cash for Counselor Realty in 2022 reflects a positive trend in the company's financial performance, driven by its operating activities. This information is valuable for prospective franchisees in evaluating the financial viability and growth potential of the franchise opportunity.