What was the cash at the end of the period for Crab N Spice in 2023?
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 end of the period in 2023 was $224. The document also provides figures for the cash at the end of the period for the prior two years. In 2022, the cash at the end of the period was $1,683, and in 2021, the cash at the end of the period was $46,524.
It is important to note that the net increase (decrease) in cash for 2023 was ($1,459). This indicates that Crab N Spice experienced a decrease in its cash holdings during that year. This figure is calculated by taking the net income, adjusting for non-cash items, and accounting for changes in working capital. For a prospective franchisee, this information is useful in understanding the company's cash flow trends and its ability to manage its finances.
When evaluating a franchise opportunity, it is crucial to consider not only the cash position at a specific point in time but also the overall trend in cash flow. A declining cash balance, as seen in Crab N Spice's 2023 figures, may warrant further investigation into the company's financial management and operational efficiency. Prospective franchisees should review the complete financial statements and consult with a financial advisor to assess the long-term viability of the franchise.