What was the net cash flow from operating activities for Mr. Sandless in 2023?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning | (195,969) | (203,056) | | Members' Contributions/(Distributions) | (66,298) | 31,911 | | Members' (Deficit) - Ending | $ (163,069) | $ (195,969) |
MR. SANDLESS FRANCHISE, LLC STATEMENT OF CASHFLOWS
| YEARS ENDED DECEMBER 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Cash Flows from Operating Activities: | ||||
| Net Income (Loss) | $ | 99,198 | $ | (24,824) |
| Depreciation | 21,196 | 11,609 | ||
| Adjustments to reconcile net income to net cash | ||||
| provided by operating activities: | ||||
| Changes in assets and liabilities | ||||
| Accounts receivable | 7,718 | (3,884) | ||
| Inventory | - | 3,852 | ||
| Due from related party | 63,822 | 18,078 | ||
| Accounts payable and accrued expenses | 4,031 | 100 | ||
| Contract Liability | (144,540) 51,425 | 73,650 78,581 | ||
| Cash Flows from Investing Activities: | ||||
| Purchase of property and equipment | (250) | (68,677) | ||
| Cash Flows from Investing Activities: | ||||
| Membe |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the net cash flow from operating activities in 2023 was not explicitly detailed as a single figure. Instead, the document provides a breakdown of various factors contributing to cash flow from operating activities. These include net income, depreciation, and adjustments related to changes in assets and liabilities.
Specifically, for the year 2023, Mr. Sandless had a net loss of $24,824. Other factors impacting cash flow from operating activities include depreciation of $11,609, changes in accounts receivable (-$3,884), inventory ($3,852), due from related party ($18,078), accounts payable and accrued expenses ($100), and contract liability ($73,650 and $78,581). These figures are used to reconcile net income to net cash provided by operating activities.
Prospective franchisees should understand that the net cash flow from operating activities is a critical indicator of Mr. Sandless's financial health. It reflects the cash generated or used by the company's core business operations. A positive cash flow indicates that the company is generating sufficient cash to maintain and grow its operations, while a negative cash flow may indicate financial difficulties. Reviewing these figures in detail, and comparing them to previous years, can provide valuable insights into the stability and performance of the Mr. Sandless franchise system.