What was the amount of Cash and Cash Equivalents for Craters & Freighters as of December 31, 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | 2024 | 2023 |
|---|---|---|
| Change in Cash and Cash Equivalents: | ||
| Cash Flows from Operating Activities: | ||
| Net Income | $ 1,355,336 $ | 2,633,230 |
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
| From Operating Income: | ||
| Amortization Expense | 116,969 | 101,989 |
| Depreciation Expense | 42,021 | 26,134 |
| Gain on Sale of Property and Equipment | - | (15,729) |
| Gain on Sale of Marketable Securities | (26) | (841) |
| Credit Losses (Recovery) | (30,000) | 10,000 |
| Non-Cash Lease Expense | 1,087 | 1,865 |
| Unrealized Holding (Gain) Loss on Marketable Securities | (135,511) | (97,174) |
| Reinvested Dividends | (14,734) | (13,827) |
| (Increase) Decrease in Assets: | ||
| Accounts Receivable | (102,546) | 138,330 |
| Prepaid Expenses | (33,459) | (166,615) |
| Other Receivable | (132,658) | - |
| Inventories | (7,592) | - |
| Notes Receivable | (16,991) | - |
| (Decrease) Increase in Liabilities: | ||
| Accounts Payable | 120,434 | (179,894) |
| Accrued Bonus | - | (132,340) |
| Accrued Wages and Other Liabilities | 30,492 | 1,332 |
| Due to Related Party | 65,000 | |
| Net Cash Flows from Operating Activities | 1,257,822 | 2,306,460 |
| Cash Flows from Investing Activities: | ||
| Investment in Software Development | (160,289) | (113,648) |
| Proceeds from Sale of Investments | 83 | 77,025 |
| Purchase of Investments | (1,160) | (71,427) |
| Payments from (Advances to) Related Party | 356,391 | (163,077) |
| Note Receivable - Former Employee | - | (100,000) |
| Purchase of Property and Equipment | (22,247) | (89,688) |
| Net Cash Flows from Investing Activities | 172,778 | (460,815) |
| Cash Flows from Financing Activities: | ||
| Distributions to Shareholder | (309,603) | - |
| (Payments to) Advances from Shareholder | (2,769,688) | 2,769,688 |
| Net Cash Flows from Financing Activities | (3,079,291) | 2,769,688 |
| Net Increase (Decrease) in Cash and Cash Equivalents | (1,648,691) | 4,615,333 |
| Cash and Cash Equivalents at Beginning of Year | 6,991,649 | 2,376,316 |
| Cash and Cash Equivalents at End of Year | $ 5,342,958 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's cash and cash equivalents at the end of 2024 totaled $5,342,958. This figure represents the amount of liquid assets readily available to Craters & Freighters to meet its short-term obligations and fund its operations.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees during challenging times or invest in new initiatives. It also indicates the franchisor's capacity to manage its own expenses and debts.
The FDD also shows that Craters & Freighters had $6,991,649 in cash and cash equivalents at the beginning of the year. The net increase (decrease) in cash and cash equivalents during 2024 was ($1,648,691). Reviewing these figures over several years, as provided in the FDD, can reveal trends in the company's financial performance and cash management practices.