What was the net cash provided by operating activities 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 net cash provided by operating activities in 2021 was $662,679. This indicates the amount of cash Crawlspace Medic generated from its core business operations during that year. Operating activities generally include the revenues and expenses incurred from the normal day-to-day running of the business.
For a prospective franchisee, this figure is an important indicator of the financial health and stability of Crawlspace Medic. A positive net cash flow from operating activities suggests that the company is able to generate enough cash from its operations to cover its expenses and potentially reinvest in the business. This can be reassuring for franchisees as it implies that Crawlspace Medic is a sustainable and well-managed franchise system.
It is important to note that this figure represents the franchisor's performance, and not necessarily the performance of individual franchise locations. While a healthy franchisor is a positive sign, prospective franchisees should still conduct their own due diligence and carefully consider their own potential financial performance. Reviewing the cash flow from operating activities in conjunction with other financial metrics can provide a more comprehensive understanding of Crawlspace Medic's overall financial situation.