What was the amount of cash and cash equivalents at the beginning of the year for Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Members' equity, beginning of year | 312,625 | | Members' equity, end of year | $ 146,051 |
STATEMENT OF CASH FLOWS
| For the Year Ended December 31 | 2023 |
|---|---|
| Increases (decreases) in cash and cash equivalents | |
| Cash flows from operating activities | $ (166,574) |
| Net income (loss) | |
| Adjustments to reconcile net loss to net cash used by | 12,500 |
| operating activities | |
| Amortization | |
| Increase in operating liabilities Accounts payable Credit cards payable Accrued payroll Deferred revenue | 5,200 7,853 2,405 50,000 |
| Net cash used by operating activities | $ (88,616) |
| NET CHANGE IN CASH A |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the cash and cash equivalents at the beginning of the year (January 1, 2023) was $203,544. The FDD also details the net change in cash and cash equivalents for 2023 was a loss of $88,616. The cash and cash equivalents at the end of the year (December 31, 2023) was $114,928.
Understanding the beginning and ending cash positions, along with the net change, provides insight into Fly Fitness's financial management and cash flow trends. A prospective franchisee can use this information to assess the company's financial stability and how it manages its liquid assets. This is particularly important when evaluating the franchisor's ability to support franchisees and invest in the brand's growth.
It is important to note that these figures are based on the financial statements prepared in accordance with generally accepted accounting principles. While the independent auditor's report indicates that the financial statements present fairly the financial position of Fly Fitness, prospective franchisees should still conduct their own due diligence and consult with financial advisors to fully understand the implications of these figures.