What was the net cash provided by operating activities for Crawlspace Medic in 2023?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
24 | $ | 216,112 | $ | 460,495 |
STATEMENTS OF CASH FLOWS CSM FRANCHISE GROUP, LLC
| 2023 | For the Years Ended December 31, 2022 | 2021 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net income | $ 1,149,783 | $ 808,447 | $ 954,060 |
| Change in noncash rental assets and liability | (1,167) | - | - |
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in franchisee fees receivable | (53,100) | 280,000 | (275,000) |
| Decrease in royalty fees receivable | - | 9,972 | 3,918 |
| (Increase) decrease in due from related parties | - | 9,599 | (9,599) |
| (Increase) decrease in prepaid expense | (21,437) | 6,918 | (12,168) |
| Increase (decrease) in accounts payable and | |||
| accrued expenses | 4,691 | (11,088) | 22,144 |
| Increase (decrease) in due to related party | 15,096 | (1,444) | (20,676) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,093,866 | 1,102,404 | 662,679 |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Payment on related party financing | - | - | (21,460) |
| Member's withdrawals | (1,029,271) | (1,052,830) | (641,150) |
| NET CASH USED IN FINANCING ACTIVITIES | (1,029,271) | (1,052,830) | (662,610) |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 64,595 | 49,574 | 69 |
| Cash and cash equivalents at beginning of year | 222,873 | 173,299 | 173,230 |
| CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 287,468 | $ 222,873 | $ 173,299 |
NOTE A -- NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFIC
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 2023 was $1,093,866. This figure represents the cash flow generated from the company's core business operations, indicating its ability to fund ongoing expenses and growth. It's a key indicator of Crawlspace Medic's financial health and operational efficiency.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It reflects the franchisor's financial stability and its capacity to support franchisees. A strong and positive cash flow from operations suggests that Crawlspace Medic is effectively managing its revenue and expenses, which can translate into better support, resources, and brand recognition for franchisees.
In comparison, the net cash provided by operating activities for Crawlspace Medic in 2022 was $1,102,404 and in 2021 was $662,679. Reviewing these figures over a three-year period provides a more comprehensive view of the company's financial performance and trends. While 2023 saw a slight decrease compared to 2022, it still represents a substantial increase compared to 2021, indicating overall positive financial performance.
It is important for potential franchisees to analyze these figures in conjunction with other financial metrics and information provided in the FDD to gain a complete understanding of Crawlspace Medic's financial condition and future prospects. Consulting with a financial advisor is recommended to assess the implications of these figures for their investment decision.