What were the proceeds from sale of investments for Craters & Freighters in 2023?
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 proceeds from the sale of investments in 2023 were $77,025. This figure is part of the cash flow statement, specifically under 'Cash Flows from Investing Activities.'
This indicates the amount of cash Craters & Freighters generated from selling its investments during that year. For a prospective franchisee, this number provides insight into the company's investment strategies and how they contribute to the overall cash flow. It's important to consider this within the context of other investing activities, such as 'Investment in Software Development' (-$113,648) and 'Purchase of Investments' (-$71,427), to understand the net impact of these activities on Craters & Freighters' financial position.
Reviewing these figures over multiple years, as presented in the table, can reveal trends in Craters & Freighters' investment practices. For instance, comparing the 2023 proceeds of $77,025 to the 2022 proceeds of $77,160, one can see a slight decrease. Analyzing these trends helps potential franchisees assess the financial stability and investment acumen of Craters & Freighters.