What was the net change in cash and cash equivalents 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: |
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 2023 was $64,595. This represents the increase or decrease in the company's cash holdings after accounting for all cash inflows and outflows during the year. Cash and cash equivalents are defined as cash accounts and highly liquid debt instruments with an original maturity of three months or less.
This figure is important for prospective franchisees because it provides insight into Crawlspace Medic's overall financial health and its ability to manage its cash flow. A positive net change suggests that the company generated more cash than it spent during the year, which could indicate strong operational performance and efficient financial management. Conversely, a negative net change might raise concerns about the company's ability to meet its financial obligations or invest in future growth.
In 2023, Crawlspace Medic started the year with $222,873 in cash and cash equivalents and ended the year with $287,468. This increase reflects the net positive change of $64,595. Reviewing these figures over several years, as presented in the FDD, can help potential franchisees identify trends and assess the stability of Crawlspace Medic's financial position. It's also worth noting that the company maintains its cash in a bank deposit account that may exceed federally insured limits, although the FDD states that the company did not exceed the insured amount as of the end of 2023.