What was the cash and cash equivalents at the beginning of the year for Crawlspace Medic in 2023?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
24 | $ | 216,112 | $ | 460,495 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2023 | For the Years Ended December 31, 2022 | 2021 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ 1,149,783 | $ 808,447 | $ 954,060 |
| Change in noncash rental assets and liability | (1,167) | - | - |
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | (53,100) | 280,000 | (275,000) |
| Decrease in royalty fees receivable | - | 9,972 | 3,918 |
| (Increase) decrease in due from related parties | - | 9,599 | (9,599) |
| (Increase) decrease in prepaid expense | (21,437) | 6,918 | (12,168) |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | 4,691 | (11,088) | 22,144 |
| Increase (decrease) in due to related party | 15,096 | (1,444) | (20,676) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,093,866 | 1,102,404 | 662,679 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | - | (21,460) |
| Member's withdrawals | (1,029,271) | (1,052,830) | (641,150) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,029,271) | (1,052,830) | (662,610) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 64,595 | 49,574 | 69 |
| Cash and cash equivalents at beginning of year | 22 |
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 2023 were $222,873. This figure represents the amount of readily available funds the company had at the start of the fiscal year, which can be used for day-to-day operations, investments, or other business needs.
For a prospective Crawlspace Medic franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. It indicates that Crawlspace Medic has sufficient liquidity to meet its short-term obligations and potentially invest in growth initiatives that could benefit the entire franchise system.
However, it's important to note that this is just one data point in assessing the overall financial health of Crawlspace Medic. A franchisee should also consider other factors such as revenue trends, profitability, debt levels, and cash flow patterns to get a comprehensive view of the company's financial performance. Reviewing the complete financial statements and consulting with a financial advisor is recommended to make an informed investment decision.