What was the cash and cash equivalents at the end 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 company's cash and cash equivalents at the end of 2021 totaled $173,299. This figure represents the amount of readily available cash and short-term investments that Crawlspace Medic had on hand at the close of the fiscal year. These funds are crucial for covering immediate obligations, funding ongoing operations, and pursuing potential business opportunities.
For a prospective franchisee, understanding the franchisor's cash position is important because it can be an indicator of the company's financial stability and its ability to support its franchisees. A healthy cash balance suggests that Crawlspace Medic is well-equipped to invest in training programs, marketing initiatives, and technological advancements that benefit the entire franchise system. It also provides a buffer against unforeseen economic challenges or industry disruptions.
It's also worth noting that Crawlspace Medic considers all cash accounts without withdrawal restrictions and highly liquid debt instruments with an original maturity of three months or less as cash equivalents. The company maintains its cash in one bank deposit account, which at times may exceed federally insured limits. However, for 2021, the company did not exceed the amount insured by the Federal Deposit Insurance Corporation, which is $250,000.