What was the cash at the beginning of the period for Pearce Bespoke in 2023?
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 party payables | 692 | - | ||
| Member contributions | - | 54,245 | ||
| Net Cash Provided by Financing Activities | 692 | 54,245 | ||
| Increase in Cash | 123,337 | 46,811 | ||
| Cash - Beginning of Period | 46,811 | - | ||
| Cash - End of Period | $ 170, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the cash at the beginning of the period in 2023 was $46,811. The end of period cash for 2022 was the beginning of period cash for 2023. The cash at the end of the period for 2023 was $170,147.
This figure is important for prospective franchisees as it provides insight into the company's cash flow management and overall financial health. A healthy cash balance suggests that Pearce Bespoke is managing its finances effectively and has sufficient liquidity to meet its short-term obligations.
Reviewing the beginning and end cash balances, along with the statement of cash flows, helps potential franchisees understand how Pearce Bespoke generates and uses cash. This information can be used to assess the stability and growth potential of the franchise system. Understanding the franchisor's cash flow situation can inform a franchisee's decision-making process and risk assessment before investing in a Pearce Bespoke franchise.