What was the cash at the beginning of the period for Crab N Spice in 2021?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES | |||
| Net Income | $ (27,731) | $ (4,507) | $ 12,642 |
| Non-Cash Adjustments | |||
| Due from Affiliate | (20,608) | (79,858) | (52,374) |
| Accounts Receivable | (28,735) | (31,114) | (7,757) |
| Due to Affiliate | ( 50,991) | 6 6,881 | 32,381 |
| Other Changes in Working Capital | 8,512 | 2 9,954 | 4 ,731 |
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | (119,552) | (18,644) | (10,377) |
| INVESTING ACTIVITIES | |||
| NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES | - | - | - |
| FINANCING ACTIVITIES | |||
| Owner's Contribution (net) | 1 18,093 | (26,199) | 56,864 |
| NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | 1 18,093 | (26,199) | 56,864 |
| NET INCREASE (DECREASE) IN CASH | (1,459) | (44,843) | 46,487 |
| CASH AT BEGINNING OF PERIOD | 1,683 | 4 6,524 | 37 |
| CASH AT END OF PERIOD | $ 224 | $ 1 ,683 | $ 46,524 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 40–50)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the cash at the beginning of the period in 2021 was $37. This information is derived from the Statement of Cash Flows, which provides a summary of the company's financial activities over the years 2021, 2022, and 2023.
For a prospective franchisee, understanding the cash flow statement is crucial as it reflects the company's ability to manage its cash. The beginning cash balance serves as a baseline for assessing how Crab N Spice's cash position has evolved over time. It's important to note that this figure represents the cash available to the company at the start of the fiscal year, which can influence its operational and investment capabilities.
Reviewing the cash flow statement in its entirety will give potential Crab N Spice franchisees insight into the franchisor's financial health and stability. Monitoring the trend in cash balances, along with the factors contributing to changes in cash flow, can help franchisees evaluate the financial risks and opportunities associated with investing in a Crab N Spice franchise.