What were the other changes in working capital 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 statement of cash flows includes a line item for 'Other Changes in Working Capital.' For the year 2023, this line item reflects an increase of $8,512.
This means that Crab N Spice experienced a net increase in its working capital from sources other than those specifically listed, such as 'Due from Affiliate,' 'Accounts Receivable,' and 'Due to Affiliate.' These 'other changes' could encompass a variety of factors affecting short-term assets and liabilities.
For a prospective franchisee, this information provides a more detailed view of the company's cash flow dynamics. While a single line item doesn't reveal the exact nature of these changes, it highlights the various factors influencing Crab N Spice's working capital position. Understanding these fluctuations can be valuable in assessing the overall financial health and stability of the franchise system.