What was the net cash provided (used) by financing activities 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 net cash provided by financing activities in 2021 was $56,864. This figure reflects the cash flow resulting from how the company was financed, including items such as owner's contributions.
For a prospective franchisee, understanding the franchisor's financing activities can provide insights into the financial stability and capital structure of Crab N Spice. A positive net cash flow from financing activities might indicate that the company is attracting investment or managing its debt effectively. Conversely, a negative cash flow could suggest that the company is paying off debt or distributing capital to its owners.
It's important to note that this is just one aspect of the overall financial health of Crab N Spice. A franchisee should consider this information in conjunction with other financial metrics, such as profitability, cash flow from operations, and the company's balance sheet, to get a comprehensive understanding of the franchisor's financial condition. Consulting with a financial advisor is recommended to fully assess the implications of these figures.