What were the net cash flows from operating activities for Craters & Freighters in 2024?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| 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 | 1,257,8 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the net cash flows from operating activities for the year ending December 31, 2024, were $1,257,822. This figure represents the cash generated or used by the company's core business operations during that period. It's calculated by adjusting net income to account for non-cash items, changes in working capital, and other operating activities.
Specifically, the net income for Craters & Freighters in 2024 was $1,355,336. This net income was then adjusted by several factors to arrive at the net cash flow from operating activities. These adjustments include amortization expense ($116,969), depreciation expense ($42,021), and changes in assets and liabilities such as accounts receivable (-$102,546) and accounts payable ($120,434). These adjustments reflect the actual cash inflows and outflows related to Craters & Freighters' operations.
For a prospective franchisee, understanding the net cash flows from operating activities is crucial as it indicates the financial health and sustainability of Craters & Freighters. A positive cash flow suggests that the company is generating enough cash from its operations to cover its expenses and potentially reinvest in the business. This information, combined with other financial metrics, can help a franchisee assess the overall financial stability and growth potential of Craters & Freighters.