What was the purchase of property and equipment for Craters & Freighters in 2023?
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 | 1,257,822 | 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 purchase of property and equipment in 2023 was $89,688. This figure is part of the cash flows from investing activities reported in the financial statements. This indicates the amount Craters & Freighters spent on acquiring new property and equipment during that year.
For a prospective franchisee, understanding this figure provides insight into Craters & Freighters' investment trends in its own infrastructure. While this is not directly related to the franchisee's investment, it can reflect the company's overall financial strategy and commitment to maintaining and upgrading its resources. It is important to note that this figure represents the franchisor's expenses and not the potential investment a new franchisee might need to make.
Reviewing these historical expenditures can help potential franchisees assess the financial health and investment patterns of Craters & Freighters. However, it is essential to consider these figures in conjunction with other financial data and information provided in the FDD to gain a comprehensive understanding of the franchise's financial standing.