What was the cash balance at the end of 2022 for Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Contributions | - | | 54,245 | | Members' Equity (Deficiency), Ending | $ (471,984) | $ | 7,880 |
PEARCE BESPOKE FRANCHISING, LLC STATEMENTS OF CASH FLOWS
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Operating Activities: | ||||
| Net Loss | $ (479,864) | $ | (46,365) | |
| Adjustments to reconcile net loss to net cash | ||||
| provided by (used in) operating activities: | ||||
| Net change in right-of-use asset | 150 | - | ||
| Changes in assets and liabilities: | ||||
| Accounts receivable | (22,188) | - | ||
| Deposits | (2,198) | - | ||
| Deferred consulting fee | (666,186) | (25,000) | ||
| Accounts payable | 72,934 | 7,591 | ||
| Accrued payroll taxes | 18,282 | 5,339 | ||
| Deferred franchise fee revenue | 1,201,715 | 51,000 | ||
| Net Cash Used in Operating Activities | 122,645 | (7,434) | ||
| Financing Activities: | ||||
| Related p |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the increase in cash for the company in 2022 was $54,245. This figure represents the net change in cash during the year, reflecting the total cash inflows less cash outflows from operating, investing, and financing activities.
Specifically, the cash flow statement details how Pearce Bespoke generated and used cash during the 2022 fiscal year. It begins with the net loss of $(46,365) and then reconciles this loss to the actual cash provided by or used in operating activities. This reconciliation involves adding back non-cash expenses and accounting for changes in working capital accounts. For 2022, adjustments included deferred consulting fees of $(25,000), accounts payable of $7,591, accrued payroll taxes of $5,339, and deferred franchise fee revenue of $51,000.
Additionally, Pearce Bespoke had cash inflows from financing activities, specifically member contributions totaling $54,245. Combining the net cash used in operating activities of $(7,434) with the net cash provided by financing activities of $54,245 results in an overall increase in cash of $54,245 for the year 2022. This indicates that Pearce Bespoke's cash position improved by this amount during the year, primarily due to member contributions outweighing the cash used in its operations.