What was the net cash flow from operating activities for Craters & Freighters in 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 5,413,239 | $ 5,414,139 |
Statements of Cash Flows
| Years Ended December 31, | 2023 | 2022 |
|---|---|---|
| Change in Cash and Cash Equivalents: | ||
| Cash Flows from Operating Activities: | ||
| Net Income | $ 2,633,230 $ | 2,437,747 |
| Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | ||
| From Operating Income: | ||
| Amortization Expense | 101,989 | 99,763 |
| Depreciation Expense | 26,134 | 21,995 |
| Gain on Sale of Fixed Assets | (15,729) | - |
| Gain on Sale of Marketable Securities | (841) | (3,643) |
| Bad Debt Expense | 10,000 | 24,928 |
| Non-Cash Lease Expense | 1,865 | 83,132 |
| Unrealized Holding (Gain) Loss on Marketable Securities | (97,174) | 69,301 |
| Reinvested Dividends | (13,827) | (13,279) |
| (Increase) Decrease in Assets: | ||
| Accounts Receivable | 138,330 | (159,098) |
| Prepaid Expenses and Deposits | (166,615) | 462 |
| (Decrease) Increase in Liabilities: | ||
| Accounts Payable | (179,894) | 225,116 |
| Accrued Bonus | (132,340) | 132,340 |
| Accrued Liabilities and Payables | 1,332 | (3,152) |
| Operating Lease Liability Change | - | (70,918) |
| Net Cash Flows from Operating Activities | 2,306,460 | 2,844,694 |
| Cash Flows from Investing Activities: | ||
| Investment in Software Development | (113,648) | (106,716) |
| Proceeds from Sale of Investments | 77,025 | 77,160 |
| Purchase of Investments | (71,427) | (71,880) |
| Due from Related Party | (163,077) | (16,876) |
| Note Receivable | (100,000) | (60,000) |
| Purchase of Property and Equipment | (89,688) | - |
| Net Cash Flows from Investing Activities | (460,815) | (178,312) |
| Cash Flows from Financing Activities: | ||
| Distributions to Shareholder | - | (4,945,919) |
| Due to Shareholder | 2,769,688 | - |
| Net Cash Flows from Financing Activities | 2,769,688 | (4,945,919) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 4,615,333 | (2,279,537) |
| Cash and Cash Equivalents at Beginning of Year | 2,376,316 |
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 operating activities for the company in 2022 was $2,844,694. This figure represents the cash generated or used by the company's core business operations during that year. It's a key indicator of Craters & Freighters' ability to fund its ongoing operations and growth through its primary business activities.
For a prospective franchisee, understanding the net cash flow from operating activities provides insight into the financial health and stability of Craters & Freighters. A positive and consistent cash flow from operations suggests that the company is effectively managing its revenues and expenses. This can be a reassuring factor for franchisees who are considering investing in the brand, as it indicates that Craters & Freighters is likely to have the resources to support its franchisees and invest in the overall growth of the system.
However, it's important to consider this figure in conjunction with other financial metrics and industry benchmarks. While a strong net cash flow from operating activities is generally a positive sign, franchisees should also evaluate Craters & Freighters' cash flows from investing and financing activities, as well as its overall profitability and debt levels, to gain a comprehensive understanding of its financial performance. Additionally, prospective franchisees may want to compare Craters & Freighters' financial performance to that of its competitors to assess its relative strengths and weaknesses.