What was the cash and restricted cash at the beginning of 2023 for Golden Krust Caribbean Restaurant?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | |||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net Income | $ 82,149 | $ 1,141,393 | ||
| Adjustments to Reconcile Net Income to Net Cash | ||||
| Used by Operating Activities: | ||||
| Depreciation and Amortization Expense | 71,983 | 91,007 | ||
| Noncash Lease Expense | 4,432 | 54,540 | ||
| Bad Debt Expense | 606,734 | 196,574 | ||
| Change in Allowance for Notes Receivable | - | 14,999 | ||
| Loss on Disposal of Equipment | 92,339 | 3,400 | ||
| (Increase) Decrease in Operating Assets: | ||||
| Accounts Receivable | (614,033) | (477,332) | ||
| Inventory | 5,837 | 3,715 | ||
| Prepaid Expenses | 2,638 | 35,908 | ||
| Other Noncurrent Assets | - | 31,812 | ||
| Increase (Decrease) in Operating Liabilities: | ||||
| Accounts Payable | (244,516) | 277,304 | ||
| Accrued Expenses | (19,736) | (2,369,929) | ||
| Deferred Franchise Fees | (36,508) | (95,050) | ||
| Other Current Liabilities | (13,254) | (38,144) | ||
| Deferral of Employment Tax Deposits and Payments | - | (50,438) | ||
| Employee Retention Credit | - | 580,958 | ||
| Net Cash Used by Operating Activities | (61,935) | (599,283) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchases of Property and Equipment | (25,444) | (21,215) | ||
| Net Cash Used by Investing Activities | (25,444) | (21,215) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Increase (Decrease) in Notes Receivable | 25,274 | (87,246) | ||
| Borrowings on Note Payable - Related Party | 5,180,961 | - | ||
| Repayments on Note Payable - Related Party | (84,410) | - | ||
| Increase (Decrease) in Due from Related Party | (24,491) | 322 | ||
| Increase (Decrease) in Due to Related Parties | (5,598,977) | 1,604,275 | ||
| Net Cash Provided (Used) by Financing Activities | (501,643) | 1,517,351 | ||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE ON CASH | - | 9,066 | ||
| NET CHANGE IN CASH AND RESTRICTED CASH | (589,022) | 905,919 | ||
| Cash and Restricted Cash - Beginning of Year | 1,357,728 | 451,809 | ||
| CASH AND RESTRICTED CASH - END OF YEAR | $ 768,706 | $ 1,357,728 |
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the cash and restricted cash at the beginning of 2023 was $1,357,728. This figure represents the total amount of readily available funds and funds with specific usage restrictions that Golden Krust Caribbean Restaurant had at the start of the year.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests financial stability and the ability to support franchisees. It can also indicate the company's capacity to invest in new initiatives, marketing, and research and development.
However, it is important to note that this figure is just a snapshot in time. The cash and restricted cash balance can fluctuate throughout the year due to various factors such as revenues, expenses, investments, and financing activities. Therefore, a prospective franchisee should also review the company's cash flow statements to understand how the cash balance has changed over time and the reasons for those changes.
Additionally, it's worth noting that the FDD also lists the cash and restricted cash at the end of 2023 as $768,706 and the beginning of 2022 as $451,809. Reviewing these figures alongside the net change in cash and restricted cash can provide a more comprehensive view of the company's cash management practices.