What was the net increase (decrease) in cash for Crab N Spice in 2022?
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 decrease in cash for the company in 2022 was $44,843. This figure represents the overall change in Crab N Spice's cash position during that year, taking into account all cash inflows and outflows from operating, investing, and financing activities.
Specifically, the statement of cash flows shows a breakdown of how this net decrease was derived. The net cash used by operating activities was $(18,644), while net cash used by financing activities was $(26,199). There was no cash flow from investing activities. The sum of these cash flows resulted in the overall net decrease in cash of $(44,843) for Crab N Spice in 2022.
For a prospective franchisee, this information provides insight into Crab N Spice's cash management and overall financial health during that period. A decrease in cash could indicate challenges in generating positive cash flow from operations or significant investments in the business. It is important to consider this figure in the context of the company's overall financial performance and future plans. Reviewing multiple years of financial statements, including 2021 and 2023, can provide a more comprehensive understanding of Crab N Spice's financial trends.