What was the net increase (decrease) in cash for Fat Shack in 2023?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
AT SHACK INC. AND SUBSIDIARY STATEMENTS OF CASH FLOWS
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 130,795 | 218,715 | 383,725 |
| Depreciation | 6,876 | 6,876 | 8,124 |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Changes in assets an |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the net income for 2023 was $218,715. There was also a depreciation amount of $6,876 and an increase in accounts receivable of $15,602. This information is derived from the cash flow statement, which is a standard financial statement that summarizes the movement of cash both into and out of a company during a specific period.
For a prospective Fat Shack franchisee, understanding these cash flow dynamics is crucial. Net income indicates the profitability of the Fat Shack business, while depreciation reflects the wear and tear on assets. The changes in assets and liabilities, such as accounts receivable, provide insights into how efficiently Fat Shack is managing its working capital.
However, the provided excerpt does not contain the full cash flow statement. It only includes the net income, depreciation, and accounts receivable figures. To fully understand the net increase or decrease in cash for Fat Shack in 2023, a prospective franchisee would need to review the complete cash flow statement, including all cash inflows and outflows from operating, investing, and financing activities. This information is essential for assessing the overall financial health and stability of the Fat Shack franchise system.