What was the net change in cash and restricted cash for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| CASH FLOWS PROVIDED BY (USED FOR): | 2022 | 2021 |
|---|---|---|
| OPERATING ACTIVITIES: | ||
| Net income (loss) | $ 1,141,393 | $ (659,030) |
| Adjustments to reconcile net income (loss) to net cash and | ||
| restricted cash (used for) provided by operating activities: | ||
| Related party loan forgiveness | - | (567,961) |
| Depreciation and amortization expense | 91,007 | 106,297 |
| Non-cash lease expense | 54,540 | - |
| Bad debt expense (recoveries) | 196,574 | (490,229) |
| Change in allowance for notes receivable | 14,999 | (61,613) |
| Loss on disposal of equipment | 3,400 | 14,800 |
| Changes in certain assets and liabilities: | ||
| Accounts receivable | (477,332) | 343,400 |
| Inventory | 3,715 | (2,414) |
| Prepaid expenses | 35,908 | (40,254) |
| Other noncurrent assets | 31,812 | (456) |
| Accounts payable | 277,304 | (56,591) |
| Accrued expenses | (2,369,929) | 2,087,305 |
| Deferred franchise fees | (95,050) | 85,408 |
| Other current liabilities | (38,144) | 12,604 |
| Deferral of employment tax deposits and payments | (50,438) | (50,433) |
| Employee retention credit | 580,958 | (580,958) |
| Net Cash (Used for) Provided By Operating Activities | (599,283) | 139,875 |
| INVESTING ACTIVITIES: | ||
| Purchases of property and equipment | (21,215) | (8,000) |
| Net Cash Used for Investing Activities | (21,215) | (8,000) |
| FINANCING ACTIVITIES: | ||
| (Decrease) increase in notes receivable | (87,246) | 189,000 |
| Decrease (increase) in due from related party | 322 | (49,000) |
| Increase (decrease) in due to related parties | 1,604,275 | (299,000) |
| Net Cash Provided by (Used for) Financing Activities | 1,517,351 | (159,000) |
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE ON CASH | 9,066 | (5,066) |
| NET CHANGE IN CASH AND RESTRICTED CASH | 905,919 | (32,191) |
| CASH AND RESTRICTED CASH: | ||
| Beginning of year | 451,809 | 484,000 |
| End of year | $ 1,357,728 | $ 451,809 |
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 net change in cash and restricted cash for the company in 2021 was a decrease of $32,191. This figure reflects the overall change in the company's cash position, taking into account all cash inflows and outflows during that year.
For a prospective franchisee, this information provides insight into the financial performance and cash management of Golden Krust Caribbean Restaurant. A negative change in cash and restricted cash could indicate that the company used more cash than it generated during the year. This could be due to various factors, such as investments in property and equipment, financing activities, or operational losses.
It's important to note that this is just one year's data and should be considered in the context of the company's overall financial performance over several years. A prospective franchisee should review the company's financial statements carefully and ask questions about any trends or fluctuations in cash flow. Understanding the reasons behind changes in cash and restricted cash can help a franchisee assess the financial stability and growth potential of Golden Krust Caribbean Restaurant.