What was the net change in cash for Crisp & Green at the end of 2023?
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 change in cash for the company at the end of 2023 was a decrease of $2,437. The beginning of the year cash was $2,537, and the end of year cash was $100.
This information is taken from the Statement of Cash Flows, which is a standard financial statement that tracks the movement of cash both into and out of a business over a specific period. It's broken down into operating, investing, and financing activities to give a clear picture of where cash is being generated and used. For prospective franchisees, this statement offers insight into how Crisp & Green manages its cash flow, which can be an indicator of financial stability and operational efficiency.
It's worth noting that while a decrease in cash might seem negative, it's essential to look at the context. In Crisp & Green's case, the decrease is relatively small. Reviewing the complete Statement of Cash Flows, alongside the other financial statements, provides a more comprehensive understanding of the company's financial health. A potential franchisee should analyze these trends over several years to assess the sustainability and growth potential of the franchise.