What was the cash and restricted cash at the beginning of 2022 for Golden Krust Caribbean Restaurant?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
nd liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Restricted Cash:
The Company considers
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company's cash and restricted cash on the balance sheets included $1,153,034 of restricted cash as of December 31, 2022, and $239,815 of restricted cash as of December 31, 2021.
This indicates that at the end of 2021, Golden Krust Caribbean Restaurant had $239,815 in cash and restricted cash. This figure represents the amount of liquid assets readily available to the company, with a portion specifically designated as restricted cash. Restricted cash typically has limitations on its use, such as funds earmarked for a particular purpose like advertising.
For a prospective franchisee, understanding the levels of cash and restricted cash that Golden Krust Caribbean Restaurant maintains is important for assessing the financial health and stability of the franchisor. It provides insight into the company's ability to meet its short-term obligations and invest in growth opportunities. The restricted cash balance, in particular, highlights funds that are set aside for specific purposes, which can impact the franchisor's flexibility in allocating resources.