What was the net cash provided by operating activities for Crawlspace Medic in 2020?
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 net cash provided by operating activities in 2020 was $204,709. This figure represents the cash generated from the company's core business operations during that year.
Specifically, this number is derived from the net income, and changes in operating assets and liabilities. These adjustments include items such as franchisee fees receivable, royalty fees receivable, due from related parties, prepaid expenses, accounts payable, accrued expenses, and due to related party. These adjustments are necessary to convert net income, which is based on accrual accounting, to a cash basis.
For a prospective Crawlspace Medic franchisee, understanding the net cash provided by operating activities is crucial. It indicates the company's ability to generate cash from its operations, which can be a sign of financial health and stability. A consistent positive cash flow from operations suggests that Crawlspace Medic is effectively managing its revenues and expenses. However, it is important to consider this figure in conjunction with other financial metrics and industry benchmarks to get a comprehensive view of the company's financial performance.
It is also important to note that past performance is not necessarily indicative of future results. Prospective franchisees should conduct their own due diligence and consult with financial advisors to assess the potential risks and rewards of investing in a Crawlspace Medic franchise.