What was the net cash provided by operating activities for Cr3 American Exteriors in 2023?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Loss | (46,591) | | Equity at December 31, 2022 | $ 4,820 | | Equity at January 1, 2023 | $ 4,820 | | Capital Contributions | 28,589 | | Net Loss | (14,538) | | Equity at December 31, 2023 | $ 18,871 | | Equity at January 1, 2024 | $ 18,871 | | Capital Contributions | 30,000 | | Net Loss | 89,667 | | Equity at December 31, 2024 | $ 138,538 |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | · | ||
| Net Income (Loss) | $ 89,667 | $ (14,538) | $ (46,591) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciation & Amortization | 87 | 87 | 29 |
| Changes in Assets and Liabilities | |||
| (Increase) Decrease in Prepaid Expenses | (1,525) | = | |
| (Increase) Decrease in Accounts Receivable | (283 |
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was a negative value. Specifically, the FDD indicates a net cash used for operating activities of $(33,212). This means that during 2023, Cr3 American Exteriors's core business operations resulted in an outflow of cash, rather than an inflow.
This figure is derived from the company's net income or loss, adjusted for non-cash items such as depreciation and amortization, as well as changes in assets and liabilities. These adjustments reconcile the net income (or loss) to the actual cash generated or used by the business during the period. For example, increases in accounts receivable (money owed to the company by customers) typically reduce the cash provided by operations, while increases in accounts payable (money the company owes to its suppliers) increase cash flow.
For a prospective franchisee, understanding the historical cash flow from operations is crucial. A negative cash flow, as seen in 2023 for Cr3 American Exteriors, could indicate potential challenges in the business's operational efficiency or profitability during that period. It's important to investigate the reasons behind this negative cash flow and assess whether it was a one-time occurrence or a recurring issue. Further due diligence, including discussions with the franchisor and a review of more recent financial statements, would be advisable to gain a comprehensive understanding of the company's financial health and stability.