What was the net change in cash for Floors To Go in 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
redit losses | | 52,720 | | 35,724 | | Travel, meals and entertainment | | 33,996 | | 49,481 | | General office | | 623 | | 6,328 | | Total operating expenses | | 1,637,084 | | 1,617,390 | | Net income | | 1,517,901 | | 1,709,639 | | Member's equity, beginning of year | | 549,866 | | 1,259,440 | | Member distributions | | (1,367,895) | | (2,419,213) | | Member's equity, end of year | $ 699,872 $ 549,866 | | | |
Statements of Cash Flows
| Year Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Cash flows from operating activities | ||||
| Net income | $ | 1,517,901 | $ | 1,709,639 |
| Adjustments to reconcile net income to net cash | ||||
| from operating activities | ||||
| Credit losses | 52,720 | 35,724 | ||
| Changes in operating assets and liabilities | ||||
| which (used) provided cash | ||||
| Accounts receivable | (62,626) | (113,736) | ||
| Prepaid expenses | 714 | - | ||
| Accounts payable | (8,963) | (5,267) | ||
| Deferred reve |
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the net change in cash for the company in 2023 was a decrease of $867,432. This figure represents the overall change in the company's cash position during the year, taking into account all cash inflows and outflows from operating, investing, and financing activities.
Specifically, the document outlines that the net cash provided by operating activities was $1,551,781, while member distributions accounted for a cash outflow of $2,419,213. The net change in cash is calculated by subtracting the member distributions from the net cash provided by operating activities, resulting in the $867,432 decrease.
For a prospective Floors To Go franchisee, this information provides insight into the company's financial performance and cash management. A significant decrease in cash could raise concerns about the company's ability to fund its operations and support its franchisees. However, it's important to consider the context of this change, including the factors that contributed to it and the company's plans to address any potential cash flow issues. Reviewing the complete financial statements and discussing these figures with the franchisor can provide a more comprehensive understanding of the company's financial health.