What was the net change in cash and cash equivalents 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 change in cash and cash equivalents for the company in 2020 was $128,858. This indicates the overall increase in the company's cash position during that year, taking into account all cash inflows and outflows. This information is derived from the statement of cash flows included in the financial statements.
Specifically, this figure represents the sum of cash flows from operating, financing, and investing activities. A positive net change, as seen here, generally suggests that the company generated more cash than it used during the year. For a prospective franchisee, this can be an indicator of the financial health and stability of Crawlspace Medic. It demonstrates the company's ability to manage its cash effectively and potentially reinvest in growth or support its franchisees.
However, it's important to consider this figure in the context of the company's overall financial performance and trends over multiple years. A single year's positive change doesn't guarantee future success. Reviewing the cash flow statements for 2022 and 2021 alongside 2020 provides a more comprehensive understanding of Crawlspace Medic's financial trajectory. Additionally, understanding the specific activities that contributed to these cash flows (e.g., operating income, investments, or financing) can offer further insights into the company's financial strategies and potential risks.
Therefore, while the $128,858 net increase in cash and cash equivalents in 2020 is a positive sign, prospective franchisees should conduct a thorough review of the complete financial statements and consult with a financial advisor to assess the long-term financial viability of investing in a Crawlspace Medic franchise.