What was the cash and cash equivalents at the beginning of the year for Crawlspace Medic in 2021?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
,112 | $ | 460,495 | $ 147,585 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | $ 808,447 | $ 954,060 | $ 218,669 |
| Net income | |||
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | 280,000 | (275,000) | (5,000) |
| (Increase) decrease in royalty fees receivable | 9,972 | 3,918 | (9,590) |
| (Increase) decrease in due from related parties | 9,599 | (9,599) | - |
| (Increase) decrease in prepaid expense | 6,918 | (12,168) | - |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | (11,088) | 22,144 | 630 |
| Decrease in due to related party | (1,444) | (20,676) | - |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,102,404 | 662,679 | 204,709 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | (21,460) | (53,629) |
| Members' withdrawals | (1,052,830) | (641,150) | (22,222) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,052,830) | (662,610) | (75,851) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 49,574 | 69 | 128,858 |
| Cash and cash equivalents at beginning o |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the cash and cash equivalents at the beginning of 2021 were $173,230. This figure represents the amount of readily available cash the company had at the start of the fiscal year, which can be used for immediate expenses, investments, or other business activities.
For a prospective franchisee, understanding the franchisor's cash position is crucial as it indicates the financial health and stability of the company. A healthy cash balance suggests that Crawlspace Medic is capable of meeting its short-term obligations and investing in the growth of the franchise system. It also provides a buffer against unforeseen economic downturns or business challenges.
It is important to note that while this figure provides a snapshot of Crawlspace Medic's financial position at the beginning of 2021, it does not reflect the company's overall financial performance throughout the year. To gain a comprehensive understanding of the company's financial health, prospective franchisees should review the complete financial statements, including the income statement, balance sheet, and statement of cash flows, and consult with a financial advisor.