What was the net change in cash for Fast Fix Jewelry And Watch Repairs in 2024?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
| | (1,251,279) | | (344,949) | | Net income | | | | | | | 357,356 | | 357,356 | | Balance, December 31, 2024 | 978,781 | $ | 100 | $ | 906,230 | $ | (893,923) | $ | 12,407 |
| 2024 | 2023 | |||
|---|---|---|---|---|
| Operating activities | ||||
| Net income | $ | 357,356 | $ | 279,052 |
| Adjustments to reconcile net income to | ||||
| net cash provided by operating activities: | ||||
| Depreciation and amortization | 693,840 | 695,347 | ||
| Amortization of debt issuance costs | 77,040 | 77,040 | ||
| Deferred income taxes | 22,787 | 63,958 | ||
| Provision for credit losses | 46,557 | |||
| Paid-in-Kind (PIK) interest | 43,543 | 44,984 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 52,988 | 5,495 | ||
| Franchise and advances receivable, net | 103,004 | - | ||
| Inventory | (28,005) | 325,631 | ||
| Prepaid expenses and other current assets | 33,280 | 30,120 | ||
| Deposits | 14,886 | 3,063 | ||
| Operating right-of-use assets and lease liabilities, net | 13,131 | 38,772 | ||
| Accounts payable | (127,596) | 86,698 | ||
| Accrued expenses and other liabilities | 16,810 | (221,455) | ||
| Income tax receivables and payables, net | 58,034 | (138,850) | ||
| Deferred revenue | (149,311) | (38,193) | ||
| Net cash provided by operating activities | 1 | 1,181,787 | 1,298,219 | |
| Investing activities | ||||
| Issuance of franchise notes and advances receiveable | (230,507) | (620,157) | ||
| Payments received on franchise notes and advances receivable | 225,351 | 71,111 | ||
| Purchases of property and equipment | (10,843) | (135,609) | ||
| Net cash used for investing activities | _ | (15,999) | (684,655) | |
| Financing activities | ||||
| Principal payments on long-term debt | (883,333) | (883,333) | ||
| Net cash used for financing activities | (883,333) | (883,333) | ||
| Net change in cash | 282,455 | la. | (269,769) | |
| Cash, beginning of year | 832,847 | 1,102,616 | ||
| Cash, end of year | $ | 1,115,302 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs' 2025 Franchise Disclosure Document, the net change in cash for the company in 2024 was $282,455. This figure represents the overall increase in the company's cash balance after accounting for all cash inflows (money coming in) and cash outflows (money going out) during the year. This is an important indicator of the company's financial health and its ability to manage its cash flow effectively.
Specifically, this net change in cash is derived from three primary activities: operating, investing, and financing. Operating activities, which reflect the cash generated from the company's core business operations, provided a net cash flow of $1,181,787. Investing activities, related to the purchase and sale of long-term assets, resulted in a net cash outflow of ($15,999). Financing activities, concerning debt and equity, led to a net cash outflow of ($883,333). The sum of these three components results in the overall net increase in cash of $282,455.
For a prospective Fast Fix Jewelry And Watch Repairs franchisee, this information provides insight into how the company manages its finances. A positive net change in cash suggests that the company is generating more cash than it is using, which can be a sign of stability and growth potential. However, it's important to consider the individual components of this change. For instance, while operating activities generated significant cash, a large outflow from financing activities (such as debt repayment) could indicate a leveraged financial position. Therefore, a franchisee should further investigate the company's financial statements and consult with a financial advisor to fully understand the implications.