What was the cash at the beginning of the year for Ledgers in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
,914 | | Net loss | | (447,527) | (447,527) | | Balances, December 31, 2022 | 3,200,000 | (1,495,613) | 1,704,387 | | Adoption of Topic 326 | | (42,286) | (42,286) | | Net loss (Restated) | | (506,600) | (506,600) | | Balances, December 31, 2023 (Restated) | 3,200,000 | (2,044,499) | 1,155,501 | | Net loss | | (361,991) | (361,991) | | Balances, December 31, 2024 | $ 3,200,000 | $ (2,406,490) | $ 793,510 |
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Statements of Cash Flow
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | J.S | ||||
| Net loss | $ | (361,991) | $ (506,600) | $ | (447,527) |
| Adjustments to reconcile net loss to net cash | |||||
| used in operating activities: | |||||
| Change in allowance for credit losses | = | 67,468 | - | ||
| Write off of notes receivable, net of | |||||
| deferred revenue | 46,310 | 226,854 | = | ||
| Accrued interest income | (5,550) | (72,480) | (5,718) | ||
| Benefit from income taxes | (104,000) | (98,000) | (153,000) | ||
| (Increase) decrease in: | × (3) | ||||
| Royalty receivables | 112 | (3,302) | - | ||
| Notes receivable | = | 11,929 | 1,252 | ||
| Increase (decrease) in: | |||||
| Accounts payable | æ | (110,964) | 6,410 | ||
| Accrued expenses | (5,220) | 4,823 | (3,362) | ||
| Deferred revenue | (40,989) | (113,362) | (114,383) | ||
| Net cash used in operating activities | (471,328) | (593,634) | (716,328) | ||
| Cash flows from investing activities: | |||||
| (Advances to) borrowings |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the cash at the beginning of the year 2024 was $181,077. This figure represents the company's cash and cash equivalents available on January 1, 2024, which serves as the starting point for tracking cash flow throughout the year.
This information is crucial for prospective franchisees as it provides insight into Ledgers' financial health and liquidity. A higher cash balance at the beginning of the year generally indicates a stronger financial position, enabling the company to meet its short-term obligations and invest in growth opportunities. Conversely, a lower cash balance may suggest potential financial constraints or a need for careful cash management.
It's important to note that this figure is just one data point in assessing Ledgers' overall financial performance. Prospective franchisees should also consider other financial metrics, such as revenue, expenses, and profitability, as well as the company's cash flow trends over time, to gain a comprehensive understanding of its financial stability and future prospects. Additionally, reviewing the notes to the financial statements can provide further context and explanations of any significant changes or adjustments to the cash balance.