What was the other current liabilities adjustment for Golden Krust Caribbean Restaurant in 2022?
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 adjustment for other current liabilities in 2022 was a decrease of $38,144. This figure is part of the adjustments made to reconcile net income to net cash used by operating activities.
This adjustment reflects changes in the company's short-term obligations, excluding items like accounts payable, accrued expenses, and deferred franchise fees. A decrease in other current liabilities suggests that Golden Krust Caribbean Restaurant reduced these specific short-term debts during the year.
For a prospective franchisee, understanding these adjustments is crucial for assessing the financial health and operational efficiency of Golden Krust Caribbean Restaurant. It provides insight into how the company manages its short-term liabilities and how these changes impact its overall cash flow from operations.