What was the net cash flow from financing activities for Craters & Freighters in 2023?
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 | (2,7 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the net cash flow from financing activities in 2023 was $2,769,688. This figure represents the net result of all financing-related cash inflows and outflows during that year.
Specifically, in 2023, Craters & Freighters had advances from a shareholder totaling $2,769,688. There were no distributions to shareholders during this period. This indicates that the company received a significant cash infusion from its shareholder, which boosted its financial position for the year.
For a prospective franchisee, this information provides insight into how Craters & Freighters manages its finances and its relationship with shareholders. A large positive cash flow from financing activities, like the one in 2023, might suggest that the company has strong support from its shareholders, which can be a positive sign of financial stability. However, it is essential to consider the context and reasons behind such transactions to fully understand their implications.