What was the interest income earned on the certificate of deposit for Counselor Realty in 2024?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Cash Flows From Operating Activities | ||
| Net income (loss) | $ (3,967) | $ |
| Adjustments to reconcile net income (loss) to net cash | ||
| flows from operating activities: | ||
| Interest income earned on certificate of deposit | (977) | |
| Cash Flows From Investing Activities | ||
| Purchase of certificates of deposit | (136,814) | |
| Redemption of certificates of deposit | 130,280 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the interest income earned on the certificate of deposit in 2024 was ($977). This figure is presented as a negative number, which means it was a reduction in cash flow from operating activities.
For a prospective franchisee, this indicates that Counselor Realty's interest income from its certificates of deposit decreased the overall cash flow from operating activities. This is important to note because it reflects the company's financial management and how investment income impacts its operational cash flow.
It is also important to consider the purchase and redemption of certificates of deposit during the same period. In 2024, Counselor Realty purchased certificates of deposit for $136,814 and redeemed certificates of deposit for $130,280. These transactions, along with the interest income, contribute to the overall cash flow from investing activities, which totaled ($6,534) for the year. Understanding these cash flow dynamics can help a franchisee assess the financial stability and investment strategies of Counselor Realty.