What was the net cash provided by operating activities for Crawlspace Medic in 2022?
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 2022 was $1,102,404. This figure reflects the cash generated from the company's core business operations during that year. It's a key indicator of Crawlspace Medic's financial health and its ability to fund ongoing expenses and future growth.
Specifically, the FDD provides a comparative overview of cash flows from operating activities over three years. In 2021, the net cash provided was $662,679, and in 2023, it was $1,093,866. This allows prospective franchisees to see how Crawlspace Medic's operating cash flow has trended over time. The 2022 figure represents a significant increase from 2021, but a slight decrease from 2023.
Understanding the components of operating activities is crucial. These activities include net income, adjustments for non-cash items, and changes in working capital accounts such as franchisee fees receivable, royalty fees receivable, prepaid expenses, and accounts payable. For example, in 2022, Crawlspace Medic saw a $280,000 increase in franchisee fees receivable and a $9,972 increase in royalty fees receivable, which are factored into the net cash provided by operating activities.
For a potential Crawlspace Medic franchisee, this information is valuable for assessing the stability and profitability of the franchisor. Strong cash flow from operations suggests that the business model is sustainable and that Crawlspace Medic is effectively managing its finances. However, it's important to consider these figures in conjunction with other financial data and to conduct thorough due diligence before making an investment decision.