What was the amount of cash and cash equivalents Fly Fitness had at the beginning of the year 2022?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
(155,540) | | Members' equity, beginning of year | 468,165 | | Members' equity, end of year | $ 312,625 |
STATEMENT OF CASH FLOWS
| For the Year Ended December 31 | 2022 |
|---|---|
| Increases (decreases) in cash and cash equivalents | |
| Cash flows from operating activities Net income (loss) | $ (155,540) |
| Adjustments to reconcile net loss to net cash used by operating activities | 12 500 |
| Amortization | 12,500 |
| Increase in operating liabilities | 125 |
| Credit cards payable Accrued payroll | 125 3,294 |
| Net cash used by operating activities | $ (139,621) |
| Cash flows from investing activities | |
| Cash paid for intangible assets | $ (125,000) |
| Net cash used by investing activities | $ (125,000) |
| NET CHA |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the company's cash and cash equivalents at the beginning of the year 2022 was $468,165. This figure represents the amount of readily available funds Fly Fitness had at its disposal to start the fiscal year. Cash equivalents are defined by Fly Fitness as highly liquid investments with an original maturity of three months or less.
This number is important for prospective franchisees to consider because it provides insight into the financial health and stability of Fly Fitness. A higher cash balance at the beginning of the year could indicate a stronger financial position, which may reassure potential franchisees about the company's ability to support its franchisees and manage its own operations.
However, it is also important to note that this is just one data point and should be considered in conjunction with other financial information, such as revenue, expenses, and liabilities, to get a complete picture of Fly Fitness's financial performance. Reviewing the complete financial statements and consulting with a financial advisor is recommended for a comprehensive understanding.