What was the ending cash balance for Gold Star as of December 31, 2022?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | |||
|---|---|---|---|
| 2024 2023 | (Restated) | ||
| Cash Flows From Operating Activities | |||
| Net Income | $ 2,498,270 $ 1,595,317 | $ 1,936,301 | |
| Reconciliation of Net Income with | |||
| Cash Flows From Operations | |||
| Depreciation | 1,249,072 930,216 | 807,295 | |
| Amortization | 63,323 | 70,168 69,297 | |
| Amortization on Loan Cost | 1 3,492 4 1,695 | 1 2,973 | |
| Loss on Disposal of Property and Equipment | - 4 4,694 | 5,367 | |
| Gain on Early Termination of Lease | - (26,298) | - | |
| Changes In | |||
| Accounts Receivable, Net | 206,833 292,502 | 524,429 | |
| Other Receivables | (589) 229,976 | (67,494) | |
| Inventory | 4 83,139 (354,258) | (479,542) | |
| Prepaid Expenses | 272,464 227,946 | (269,624) | |
| Contract Assets | - 3 6,849 | 1 14,057 | |
| Deposits | 1 43,766 1 0,156 | (239,834) | |
| Right of Use Asset - Operating Leases | 9 75,114 8 81,258 | 6 10,647 | |
| Operating Lease Liabilities | (790,746) (765,735) | (517,628) | |
| Bank Overdraft | - (432,410) | 4 32,410 | |
| Accounts Payable Operating | (755,131) 1,041,601 | (409,194) | |
| Gift Card Liability | 6,158 2,909 | 6,744 | |
| Deferred Franchise Fees | (17,826) (26,558) | (14,609) | |
| Accrued Wages and Other Liabilities | 2 61,526 2 6,786 | (3,854) | |
| Accrued Expenses and Other Liabilities | (205,784) 4 0,485 | (125,691) | |
| Cash Provided by Operating Activities | 4 ,403,081 3,867,299 | 2,392,050 | |
| Cash Flows From Investing Activities | |||
| Payments on Notes Receivable | - 1 2,621 | 3 2,227 | |
| Acquisition of Goodwill | - (200,000) | (89,300) | |
| Acquisition of Intangible Assets | - (94,447) | - | |
| Proceeds From Disposal of Property and Equipment | - 485,000 | - | |
| Acquisition of Property and Equipment | (1,465,572) (4,640,206) | (1,336,338) | |
| Cash Used by Investing Activities | (1,465,572) (4,437,032) | (1,393,411) | |
| Cash Flows From Financing Activities | |||
| Change in Line of Credit | (92,581) 1 12,437 | 1,681,630 | |
| Proceeds From Installment Note Payable | - 1,833,832 | - | |
| Payments on Installment Note Payable | (658,333) (632,321) | (853,334) | |
| Distributions | (1,814,281) (1,384,625) | (1,658,407) | |
| Cash Used by Financing Activities | (2,565,195) (70,677) | (830,111) | |
| Net Change in Cash | 3 72,314 (640,410) | 1 68,528 | |
| Beginning Cash Balance | 1,218,648 1,859,058 | 1,690,530 | |
| Ending Cash Balance | $ 1 ,590,962 $ 1 ,218,648 | $ 1 ,859,058 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the ending cash balance as of December 31, 2022, was $1,859,058. This figure represents the total cash and cash equivalents Gold Star had on hand at the close of the 2022 fiscal year. This provides a snapshot of the company's liquidity and its ability to meet short-term obligations and fund ongoing operations.
For a prospective franchisee, the ending cash balance can be an indicator of the financial health and stability of Gold Star. A higher cash balance generally suggests a stronger financial position, which can be reassuring for those considering investing in a franchise. It demonstrates the company's ability to manage its finances effectively and potentially weather economic downturns or unexpected expenses.
However, it's important to consider this figure in conjunction with other financial metrics and information provided in the FDD. Analyzing trends in cash flow, profitability, and debt levels will provide a more comprehensive understanding of Gold Star's overall financial performance. Prospective franchisees should also consult with financial advisors to assess the implications of these figures for their investment decisions.