What was the net increase (decrease) in cash for Pearce Bespoke in 2024?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 60,463 | \$ | (502,101) | \$ | (441,638) |
PEARCE BESPOKE FRANCHISING, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2024
| 2024 | |
|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Net (loss) | $ (22,237) |
| Adjustments to reconcile net income (loss) to net | |
| cash provided by operating activities: | |
| Amortization expense | 1,010 |
| Recognition of deferred commissions | 145,502 |
| Recognition of non-refundable deferred franchise fees | (872,417) |
| Changes in assets and liabilities | |
| Accounts receivable | (83,157) |
| Deferred commissions | (156,000) |
| Accounts payable and accrued expenses | 32,700 |
| Franchisee payable | 151,944 |
| Non-refundable deferred franchise fees | 433,500 |
| Net cash (used) by operating activities | (369,155) |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Net cash (used) for investing activities | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Member contributions | 52,583 |
| Proceeds from notes payable | 409,200 |
| Payments on notes payable | (242,818) |
| Advances to related party | - |
| Net cash (used) by financing activities | 218,965 |
| NET INCREASE (DECREASE) IN CASH | (150,190) |
| CASH, BEGINNING | 170,147 |
| CASH, ENDING | $ 19,957 |
| SUPPLEMENTAL DISCLOSURES | |
| Cash paid for interest |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the net increase (decrease) in cash for the company in 2024 was a decrease of $150,190. The beginning cash balance was $170,147, and the ending cash balance was $19,957.
Pearce Bespoke's statement of cash flows provides a detailed look at the movement of cash both into and out of the business during the year. It's broken down into operating, investing, and financing activities. For Pearce Bespoke in 2024, operating activities resulted in a cash outflow of $369,155, while financing activities provided a cash inflow of $218,965. There was no cash flow from investing activities.
For a prospective franchisee, this information is useful for understanding how Pearce Bespoke manages its cash. A significant decrease in cash could indicate potential financial challenges within the company. Reviewing the statement of cash flows in detail can help a franchisee understand the specific factors that contributed to the decrease, such as net losses, changes in accounts receivable, or investments in deferred commissions. It is important to note that the company had a net loss of $22,237 in 2024.