What was the (increase) decrease in prepaid expense 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 (increase) decrease in prepaid expense for 2021 was ($12,168). This figure is part of the cash flow statement, specifically within the changes in operating assets and liabilities section. It reflects the change in the company's prepaid expenses during that year.
For a prospective Crawlspace Medic franchisee, understanding changes in prepaid expenses can offer insights into the company's operational efficiency and financial management. Prepaid expenses are costs that have been paid in advance but not yet consumed, such as insurance premiums or rent. A decrease in prepaid expenses, as seen in 2021, could suggest that the company used more of its previously paid resources during that year compared to the previous year.
It's important to note that this figure is part of a larger financial statement and should be analyzed in conjunction with other line items to gain a comprehensive understanding of Crawlspace Medic's financial health. Franchisees should consider how these changes in operating assets and liabilities might impact their own business operations and cash flow management.