What was the net change in cash and cash equivalent during the year for Deck Medic in 2023?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| | C. Operations Manual Table of Contents | H. State Specific Addenda | | D. Financial Statements | I. State Effective Dates | | E. Franchise Agreement | J. Receipts |
| 2023 | 2022 | |
|---|---|---|
| Cash Flows From Operating Activities: | ||
| Net income (loss) | $ (4,533) | $ (28,455) |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Provision for bad debt | 13,680 | 12,765 |
| Change in assets and liabilities: | ||
| Accounts receivable | 7,073 | 447 |
| Accounts payable and accrued liabilities | 1,028 | 2,598 |
| Deferred revenue | (2,250) | (2,250) |
| Net Cash Provided By (Used In) Operating Activities | 14,997 | (14,895) |
| Cash Flows From Investing Activities | ||
| Net Cash Provided by (Used In) Investing Activities | - 5 | |
| Cash Flows From Financing Activities | ||
| Stockholders' contributions | 282 | |
| Net Cash Flows Provided By (Used In) Financing Activities | 282 | |
| Net Change In Cash And Cash Eq |
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the net change in cash and cash equivalent during the year 2023 was $14,997. This indicates that Deck Medic's cash and cash equivalents increased by this amount during the specified period. Cash equivalents include bank accounts and cash in transit for bank deposits with maturities of three months or less.
This increase in cash and cash equivalents could be due to a variety of factors, such as increased revenue, decreased expenses, or proceeds from financing activities. For Deck Medic, the increase in cash is primarily attributed to cash flows from operating activities. Understanding the sources of cash flow can help a potential franchisee assess the financial health and stability of the franchisor.
It's important to note that while an increase in cash is generally positive, it doesn't tell the whole story. A prospective Deck Medic franchisee should also consider the company's overall financial performance, including its profitability, debt levels, and other key financial ratios. Reviewing the complete financial statements and seeking professional advice is recommended to gain a comprehensive understanding of Deck Medic's financial situation.