What was the change in due from related parties for Deck Medic used to reconcile net income?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| ~ | | | 282 | | 282 | | Net income (loss) | | | - 8 | | | (28,455) | | (28,455) | | Balance At December 31, 2022 | 1,000 | $ | 1,000 | $ | 2,000 | $ 116,272 | $ | 119,272 |
| Cash Flows From Operating Activities Net income / (loss) $ (28,455) Adjustments to reconcile net income to net cash provided by operating activities Bad debt expenses 12,765 Change in operating activities Change in accounts receivable 447 Change in short term investments - Change in due from related parties Change in accrued liabilities 2,598 Change in deferred revenue (2,250) | $ 79,580 |
|---|---|
| Adjustments to reconcile net income to net cash provided by operating activities Bad debt expenses 12,765 Change in operating activities Change in accounts receivable 447 Change in short term investments - Change in due from related parties - Change in accrued liabilities 2,598 | $ 79,580 |
| provided by operating activities Bad debt expenses 12,765 Change in operating activities Change in accounts receivable 447 Change in short term investments - Change in due from related parties - Change in accrued liabilities 2,598 | |
| Bad debt expenses 12,765 Change in operating activities Change in accounts receivable 447 Change in short term investments - Change in due from related parties - Change in accrued liabilities 2,598 | |
| Change in operating activities Change in accounts receivable 447 Change in short term investments - Change in due from related parties - Change in accrued liabilities 2,598 | |
| Change in accounts receivable 447 Change in short term investments - Change in due from related parties - Change in accrued liabilities 2,598 | * |
| Change in short term investments - Change in due from related parties - Change in accrued liabilities 2,598 | |
| Change in due from related parties - Change in accrued liabilities 2,598 | (17,893) |
| Change in accrued liabilities 2,598 | 50,000 (45,000) |
| Change in deferred revenue (2,250) | (1,198) 20,250 |
| Net Cash Provided By (Used In) Operating Activities (14,895) | 85,739 |
| Cash Flows From Investing Activities | |
| Net Cash Flows Provided By (Used In) Investing Activities | 1 |
| Cash Flows From Financing Activities | |
| Stockholders' distributions 282 | (100,000) |
| Net Cash Flows Provided By (Used In) Financing Activities 282 | (100,000) |
| Net Change in |
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the change in due from related parties used to reconcile net income is a negative value. Specifically, the document shows "Change in due from related parties - Change in accrued liabilities 2,598 | (17,893)". This indicates a change of -$17,893 related to amounts due from related parties.
This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities. It reflects changes in the amounts owed between Deck Medic and its related parties, impacting the overall cash flow calculation. A negative change suggests that either the amount owed to Deck Medic by related parties decreased, or the amount Deck Medic owes to related parties increased during the period.
For a prospective franchisee, this information provides insight into the financial relationships Deck Medic has with its related parties and how these relationships affect the company's cash flow. Understanding these adjustments can help a franchisee assess the overall financial health and stability of the franchisor. It is important to note that this is just one component of the cash flow statement, and should be considered in conjunction with other financial data to gain a comprehensive understanding of Deck Medic's financial performance.