What was the net cash provided (consumed) by financing activities for Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
December 31, 2023**
| Net Income | $ | (15,648) |
|---|---|---|
| Net cash provided (consumed) by operating activities | (15,648) | |
| Cash flows from financing activities: | ||
| Stockholders' Contribution | 2,000 | |
| Short Term Loan-Endless Summer Sweets, LLC | 15,648 | |
| Net cash provided (consumed) by financing activities | 17,648 | |
| Net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the net cash provided by financing activities from March 9 to December 31, 2023, was $17,648. This figure reflects the total cash inflow resulting from financing activities during that period.
Specifically, the statement of cash flows includes stockholders' contributions of $2,000 and a short-term loan from Endless Summer Sweets, LLC, of $15,648. These two items combined account for the total net cash provided by financing activities.
Understanding the sources of financing is crucial for prospective franchisees. It shows how Endless Summer Sweets is funding its operations and growth. In this case, the financing activities include contributions from stockholders and loans, which are typical methods for a new company to raise capital. This information gives potential franchisees insight into the financial strategies and stability of Endless Summer Sweets.