What was the net cash provided by operating activities for Crisp & Green in 2021?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| BALANCE - DECEMBER 31, 2020 | $ 1,205,873 |
|---|---|
| Net Income | 1,737,797 |
| Distributions | (915,859) |
| BALANCE - DECEMBER 31, 2021 | 2,027,811 |
| Net Income | 3,881,136 |
| Distributions | (2,971,018) |
| BALANCE - DECEMBER 31, 2022 | 2,937,929 |
| Net Income | 4,444,324 |
| Distributions | (4,510,497) |
| BALANCE - DECEMBER 31, 2023 | $ 2,871,756 |
CRISP & GREEN FRANCHISING LLC STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023, 2022, AND 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net Income | $ 4,444,324 | $ 3,881,136 | $ 1,737,797 |
| Adjustments to Reconcile Net Income to Net Cash | |||
| Provided by Operating Activities: | |||
| Changes in Operating Assets and Liabilities: | |||
| Accounts Receivable | 1,644,628 | (1,420,263) | (658,819) |
| Deferred Costs | 158,797 | (1,078,419) | (2,247,000) |
| Accounts Payable | 32,312 | 2,136 | - |
| Deferre |
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the net cash provided by operating activities in 2021 was $2,344,878. This figure represents the cash flow generated from the company's core business operations during that year.
Specifically, this number is calculated by starting with the net income of $1,737,797 and then adjusting for non-cash items and changes in working capital accounts. These adjustments include changes in accounts receivable (-$658,819), deferred costs (-$2,247,000), accounts payable ($0), and deferred revenue ($3,512,900). These adjustments reconcile net income to the actual cash generated from operations.
For a prospective Crisp & Green franchisee, this information provides insight into the financial health and operational efficiency of the franchisor. A positive net cash flow from operating activities indicates that the company is generating sufficient cash from its business to cover its operating expenses and invest in future growth. Reviewing these figures over several years, as presented in the table, can reveal trends and provide a more comprehensive understanding of the company's financial performance.