What was the net cash provided by operating activities for Boulder Designs in 2022?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
135,967 | 183,606 | | General and administrative expenses | 1,250,875 | 1,301,065 | 1,266,488 | | | 2,192,873 | 2,251,831 | 2,055,860 | | Operating income (loss) | 136,924 | (662,471) | 108,254 | | Interest expense | (14,073) | (21,578) | (4,884) | | Other expense | (28,000) | (31,696) | (36,241) | | Net income (loss) | 94,851 | (715,745) | 67,129 | | Member's deficit, beginning of year | (3,810,894) | (2,996,967) | (2,779,329) | | Contributions from member | 87,889 | 259,214 | 403,269 | | Distributions to member | (493,883) | (357,396) | (688,036) | | Member's deficit, end of year | $ (4,122,037) | (3,810,894) | (2,996,967) |
Statements of Cash Flows
Years Ended December 31,
| _ | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income (loss) | $ | 94,851 | (715,745) | 67,129 |
| Adjustments to reconcile net income (loss) to net | · | , , , | · | |
| cash from operating activities: | ||||
| Depreciation and amortization | 25,731 | 24,988 | 25,680 | |
| Provision for credit losses | 86,025 | 30,799 | 13,287 | |
| Impairment loss on acquired franchise | ||||
| agreements | 28,000 | 30,000 | 30,000 | |
| Changes in operating assets and liabilities: | ||||
| Franchise fees receivable | 70,103 | (503,303) | (11,365) | |
| Inventory | 61,051 | 27,531 | 21,766 | |
| Deferred costs | 75,212 | (15,134) | (115,101) | |
| Other receivables | (2,932) | (868) | (700) | |
| Trade accounts payable and | ||||
| accrued expenses | 6,111 | (210,366) | 298,101 | |
| Deferred franchise fees | _ | 243,044 | 1,702,881 | 84,557 |
| Net cash provided by operating activities | 687,196 | 370,783 | 413,354 | |
| Cash flows from investing activities: | ||||
| _ | 30,986 | (6,331) | ||
| Advances to (repayments from) related party | - | (20,000) | (204,500) | |
| Payments for acquired franchises Capital expenditures | (8,860) | (20,000) | (8,244) | |
| _ | (0,000) | (0,244) | ||
| Net cash provided by (used in) investing activities | (8,860) | 10,986 | (219,075) | |
| investing activities | _ | (8,800) | 10,780 | (217,075) |
| Cash flows from financing activities: | ||||
| Proceeds from iss |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $413,354. This figure represents the cash flow generated from the company's core business operations during that year. It's a key indicator of Boulder Designs's ability to fund its operations, invest in growth, and meet its financial obligations.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It offers insight into the financial health and stability of Boulder Designs. A positive cash flow suggests that the company is generating sufficient cash from its operations to cover expenses and potentially reinvest in the business. This can be a reassuring factor for franchisees considering investing in the Boulder Designs system.
However, it's important to consider this figure in the context of other financial metrics and industry benchmarks. While $413,354 indicates positive cash generation in 2022, franchisees should also review Boulder Designs's cash flow trends over several years to assess consistency and sustainability. Additionally, comparing this figure to similar companies in the franchise sector can provide a more comprehensive understanding of Boulder Designs's financial performance.
Furthermore, prospective franchisees should investigate the specific factors that contributed to the net cash provided by operating activities in 2022. Understanding the drivers of cash flow, such as revenue growth, expense management, and changes in working capital, can help franchisees evaluate the potential risks and opportunities associated with investing in a Boulder Designs franchise.