What was the increase/decrease in notes receivable for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| CASH FLOWS PROVIDED BY (USED FOR): | 2022 | 2021 |
|---|---|---|
| FINANCING ACTIVITIES: | ||
| (Decrease) increase in notes receivable | (87,246) | 189,000 |
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 decrease in notes receivable during the 2022 fiscal year was $87,246. This figure is part of the cash flow statement, specifically under cash flows from financing activities.
Notes receivable represent money owed to Golden Krust Caribbean Restaurant, typically from loans or credit extended to others. A decrease in this balance suggests that either fewer new notes were issued, existing notes were paid down, or a combination of both. For a prospective franchisee, this detail provides insight into the company's financing activities and how it manages its receivables.
It's important to note that this decrease is part of the overall cash flow analysis and should be considered alongside other financial activities. Understanding the reasons behind this decrease would require further investigation, such as reviewing the types of notes receivable Golden Krust Caribbean Restaurant holds and their repayment terms. This information is valuable for assessing the financial health and stability of the franchise system.