Does the Crave Cookies Statement of Cash Flows disclose non-cash investing and financing activities?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2022 | 2021 | |||
|---|---|---|---|---|
| Non-cash Supplemental Cash Flow Information | ||||
| Accrued expense converted into a note receivable - related party | $ | 9,026 | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the Statement of Cash Flows does disclose non-cash investing and financing activities. Specifically, the statement for the years 2022 and 2021 includes a line item for "Accrued expense converted into a note receivable - related party."
For the year 2022, the amount listed for accrued expenses converted into a note receivable is $9,026. This indicates that Crave Cookies engaged in a transaction where an accrued expense was converted into a note receivable with a related party, which is a non-cash transaction that impacts the company's financial statements.
This type of disclosure is important for prospective franchisees as it provides insight into the financial transactions of Crave Cookies that do not involve the direct exchange of cash. Understanding these non-cash activities can help franchisees gain a more comprehensive view of the company's financial health and its dealings with related parties.